Algo Capital, the investment arm of the US-based Algorand company, lost about 1-2 million USD in stable Tether coins (USDT) and Algorand tokens (ALGO) after Pablo Yabo's CTO mobile phone was compromised.
This violation allowed hackers to access the hot Algo wallet managed by Yabo.
The total amount of the damage was reported in an e-mail by David Garcia, the company's CEO. He confirmed the security breach and stated that the company had provided details of the incident to its limited partners in accordance with the article.
Referring to an anonymous source, the report states that Algorand is aware of the breach that Algo Capital has experienced so far. The company will take full responsibility for the losses and plans to reimburse the entire amount within 20 months.
While the Algorand network has not been affected because most of its funds are kept in cold wallets that have not been violated, Yabo has reportedly resigned from his position, according to an email sent to the partners.
In August 2019. Algo Capital raised $200 million for a venture capital fund planning to invest in companies helping to build infrastructure for the Algorian blockchain network. Based on the Byzantine Contract News Transfer protocol, the network is an open public ledger and currency crypto payment system.
