by John Smith 
The CTO at Algo Capital resigns after their Hot Wallet was hacked!
Pablo Yabo, the CTO of the venture capital firm Algo Capital has taken responsibility for the hack of their crypto wallet for an estimated value of 1 to 2 million dollars in Tether and Algo tokens.
Algo Capital, while investing heavily in the Algo tokens issued by Algorand, is not related or affiliated with the Algorand blockchain.
Hackers had access to the CTO’s mobile phone and were able to access key files in just a few minutes to steal cryptocurrencies in this hot wallet.
A hot wallet unlike a cold wallet is a crypto wallet connected to the internet and can therefore be hacked via an internet connection if hackers get passwords or a back door in the system.
Algo Capital has communicated on Twitter following the hack of their crypto wallet that will cost a lot of money…
1/ We will publish a formal statement soon regarding this incident. In the meantime we want to share the statement we had given to the Coindesk: https://t.co/InnG4p96dQ pic.twitter.com/8PEXCVqNWm
— Algo Capital (@Algo_Capital) October 6, 2019
Algo Capital who specifies that the majority of the tokens it has are on a cold wallet on Coinbase.
The venture capital company will take care of these losses, indicating that investors will not be impacted by this theft in their hot crypto wallet.
Algo Capital states:
“We want to let you know that none of our investors have had a negative impact since we – as general partners – have assumed all the responsibility and are covering 100% of the loss.”
The CTO is therefore paying the price for the hack of his smartphone by hackers who seem talented given the speed of the heist inside the crypto wallet that was done in minutes.
The cryptocurrencies were then quickly dispersed on many addresses and crypto wallets to scramble the tracks.
Recall that it is better to store Bitcoins and cryptocurrency on a cold wallet precisely.
A crypto wallet like the Ledger Nano X which is not connected to the internet and which is certainly the best crypto wallet as we explain in our tutorial about the Ledger Nano X.
