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Algorand's investment arm Algo Capital loses up to $2M crypto funds in hot wallet breach

Mon, 07 Oct 2019, 05:00 am UTC

Algorand’s investment arm Algo Capital lost around $1–2 million in Tether stablecoins and Algorand tokens after the mobile phone of its chief technology officer was breached.

Citing sources with knowledge about the matter, CoinDesk reported that hackers were able to gain access to the Algo hot wallet managed by Pablo Yabo, its CTO.

The breach was confirmed in an email by the company’s CEO David Garcia, saying that Algo Capital has informed its limited partners of the incident. The company said that it will take full responsibility for the loss and plans to reimburse the whole amount within 20 months.

We are engaging with certain key organizations and security services to collaborate and address this issue which has become a common industry problem,” Garcia said.

Meanwhile, the breach did not affect the Algorand network, where most of the funds are stored in cold wallets.

In a Medium post, Yabo also said he will shoulder most of the refund cost.

I take responsibility for this and thus will be personally covering most of the stolen funds and the rest will be covered by Algo Capital General Partners.”

He also confirmed reports that he resigned from Algo Capital following the mishap.

I have decided to focus entirely on to do what I love most: build tools and software that increases the adoption of blockchain technology,” he said.

Just last month, real estate investment firm AssetBlock launched a new platform for trading commercial properties on Algorand. the firm teamed up with luxury hotel asset manager Lodging Capital Partners (LCP) to tokenize $60 million worth of exclusive hotel properties on Algorand blockchain.

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