Algo Capital Loses $2 Million From Their Hot Wallet; Algorand (ALGO) And USDt Stolen
The investment arm of Algorand recently revealed that they have lost close to $2million in Tether after CTO Pablo Yabo’s mobile phone was compromised.
Algo Capital is a financial institution focused on powering Algorand’s borderless economy. Led by a team of veteran blockchain investors and entrepreneurs, Algo Capital develops financial products that accelerate access, adoption, and liquidity of the Algo, the native digital currency of the Algorand blockchain.
The company confirmed on Friday that technology director Pablo Yabo's cell phone was hacked. Attackers, technology director of a hot wallet of the company, explaining that the capture, close to $ 2 million in money changed hands.
The firm’s founder and managing partner Arul Murugan says:
“Our investment approach specifically targets companies that are creating the next great blockchain applications and infrastructure solutions, and as a result, helping to speed blockchain adoption and bring millions of new users into the Algorand network.”
Since its native token, the ALGO, launched in June, it has dropped like a stone. The coin launched at a high price of $3.28, saw an initial sell-off in the first few days and then slumped over the long term down to just $0.20. That’s a drop of 94 percent. In the last 24 hours alone, ALGO fell 27 percent.
Notably, in August 2019, Algo Capital raised $200 million. The new fund will invest in businesses helping to build infrastructure for the Algorand blockchain — an open-source public ledger and cryptocurrency payment system that utilizes a Byzantine Agreement message-passing protocol.