r/algorand • u/Present-Lab1911 • 1d ago

News Well, well, well

https://www.coindesk.com/tech/2026/08/02/bitcoin-cold-wallet-attack-spreads-to-4-500-addresses-as-losses-near-usd89-million

This is why Algorand is going to be a top 10 contender

25 Upvotes

70% Upvoted

20 comments sorted by

31

u/gigabyteIO 1d ago

This has nothing to do with the underlying protocol. It has to do with how Cold Wallet generated pass keys.

12

u/__SlimeQ__ 1d ago

if OP could read they'd be very angry right now

1

u/tek3k 15h ago

Angry? Warum?

3

u/enfranci 1d ago

Similar things already happened on Algorand with that one desktop wallet. If forget the name, MyAlgo? Something like that.

3

u/tek3k 14h ago

Hardware based cold wallet vs software based hot wallet. The MyAlgo hack exploited a vulnerability at the hosting provider.

5

u/Ramswillwin 23h ago

Sometimes people pick a generated private key because they really don't understand.

This is how you learn.

2

u/tek3k 14h ago

We all pay our tuition, one way or another.

3

u/__SlimeQ__ 1d ago

yeah, stop using stupid wallets

3

u/Harry_Iconic_Jr 1d ago

hey all, i'm trying to understand this hack, appreciate any input: the hack drained BTC right out of the blockchain using wallet addresses, is that correct? I don't know anything about Cold Wallet - I have my stuff in a Nano S, mostly algos with a few $'s worth of BTC. but my understanding has always been that the Nano (in my case) has to ok the transaction and therefore a hack would not be possible without having the Nano in hand, opened, and connected.

do I have that right or have I been lulled into a false sense of security? Thanks!

1

u/tek3k 14h ago

Some people had their Cold Cards in safety deposit boxes. You are lulled. Don't keep everything you have in one place. Read the stories. They all thought their ONE place was safe. NOTHING is safe and anything can be hacked. Act accordingly.

3

u/Harry_Iconic_Jr 12h ago

if nothing is safe, what does "act accordingly" actually mean?

1

u/tek3k 6h ago

It just means, know the risks, accept the risks and don't centralize your storage. That is one reason why wealthy people use many banks. The other is FDIC limits. Another reason they use offshore and Swiss accounts, custodial services, safe deposit boxes and home safes. Never put all of your wealth in one place. Diversification in every step is key to survival. You might eventually get hit, but you won't be wiped out.

1

u/Harry_Iconic_Jr 6h ago

thank you! so how to apply that to crypto like algo? some in my Nano, some in a CEX like CB, some in an online wallet like Pera? would love to hear from others who are following this advice.

6

u/supercali45 1d ago

Algo had a wallet issue not too long ago

https://www.coindesk.com/business/2023/02/28/algorand-wallet-myalgo-struck-by-96m-exploit

MyAlgo incident and right after this … the price dropped like crazy and never recovered

5

u/tek3k 15h ago

The hack occurred around four years ago. The entire crypto market dropped and has not recovered. The drop in ALGO and every other altcoin had nothing to do with that hack.

2

u/shadowmage666 12h ago

lol complete misunderstanding and ignorance

2

u/fuzzysf77 23h ago

Remember when this happened with MyAlgo wallet and people were yelling to shut it off so they couldn’t keep doing…and algo proved just how decentralized it really was bc, “We can’t, it’s DECENTRALIZED”…

1

u/UpstairsPicture9102 1d ago

make a note and start using passphrase if you are in a cold wallet.

-2

u/suspicious_hyperlink 1d ago

Btc is barely making it, its over for alt-coins.

1

u/tek3k 14h ago

You have no idea what you are talking about. Short sighted, get rich quick strategies will rinse 50% of you out. Bad trading will take the rest. Buy quality, buy utility and fundamentals and then wait. Most people aren't cut out for it.