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SimpleSwap Returns Funds Stolen In The MyAlgo Hack

Aug 3, 2023
3 min read

This blog post will cover:

  • What happened?
  • Why is it important?

SimpleSwap, an instant crypto exchange, has stopped malicious transactions and returned crypto to its rightful owners after the MyAlgo hack.

What happened?

On February 27, 2023, blockchain wallet provider Algorand asked users to withdraw tokens from addresses created in the MyAlgo app via a seed phrase. The reason behind it was an exploit. Because of this bug, hackers stole crypto assets worth $9.2 million.

MyAlgo tweeted that they have not yet determined the reasons for the hack. Therefore, the protection of tokens is now the work of clients.

Wallets whose owners store the phrase in the browser most often suffer from the hacks. So SimpleSwap reminds you again: it is best to write out words and not store any passwords on devices.

SimpleSwap, among other crypto exchanges, was used by the hackers in their attempt to liquidate the stolen funds. However, SimpleSwap managed to stop these three transactions: one withdrawal was worth 300,000 ALGO, and the other two 100,000 USDC each. We tracked from which hacked wallets the funds were withdrawn, found the owners and returned the assets:

Such companies as Big Brain Holdings and Newstyle Entertainment Blockchain Inc. were among the owners of the affected wallets.

Even though SimpleSwap resolved the issue directly with the victims, all our actions were coordinated with the FBI Atlanta. We worked together to solve the problem that has affected our customers. Our partnership turned out to be very productive, and in the end we received warm feedback from FBI Atlanta:

Lauren and team,

I just wanted to thank you for your professionalism and willingness to work directly with the victims.

Again, thank you from FBI Atlanta!

All the kind words from their email have reminded us one more time that openness to communication and friendliness are the greatest tools in the working process. Mutual assistance and mutual care — that’s what will make the Crypto World a better and safer place.

Why is it important?

In the Crypto World, the ultimate success of a project relies on the trust and reputation it earns within its community. Therefore it is extremely important for SimpleSwap to be honest and supportive with our customers. By placing great emphasis on transparency, SimpleSwap serves as a prime example of how the crypto ecosystem can cultivate a welcoming environment. We are always happy to cooperate with others, in order to make our industry a safer place for investors, traders, and crypto-enthusiasts.

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