Algo Capital, an investment firm focused on Algorand blockchain, lost a few million dollars in USDT and some phone chips after its chief technology officer was raped, CoinDesk has learned.
According to a source close to the deal, Algo Capital reported its limited partners Friday that Pablo Yabo, its CTO, had his mobile compromised that allowed the attackers to take control of a hot purse Something administered by Yabo. As a result of the rape, about $ 1 million to $ 2 million in the cryptocurrencies, according were taken with an email from CEO, David García seen by CoinDesk.
“Yes, there was a violation of security,” said CEO David Garcia CoinDesk in an email. “We communicate to all Algo Capital Fund Limited Partnership VC and updated about the incident.”
The network itself remains unscathed. The Algorand team is aware of the rape of the investment firm, the source said.
Something Capital has raised $ 200 million for venture capital fund something with the money allocated to support projects in the Algorand economy. Something Capital founder and managing partner Arul Murugan said in a statement August 2019:
“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.”
The investment firm is a separate and Algorand LLC Algorand Foundation, which oversees the actual development of the blockchain entity. Pablo Yabo has resigned, according to the email sent to members. Other security measures have been taken by the company. Most of the funds of the firm was held in the portfolios of cold is not compromised.
The company is taking full responsibility for the loss and commitment to reimbursing the entire amount within 20 months. “We are participating with certain key organizations and security services to collaborate and address this issue, which has become a common problem in the industry,” Garcia wrote.
The Algorand blockchain itself was first conceived by MIT Professor Silvio Micali in 2017 as a possible solution to problems of scale face other blockchains. Under the consensus mechanism randomly selects the network machines following the blockchain blocks, as a variant of test mechanism participation add.
Yabo did not immediately return a request for comment.