Cryptocurrency Algorithm Update: Asset Theft Incident and Measures to Protect Your Assets

On September 8, 2024 — International

Cryptocurrency Algorithm identified an anomaly on 72 client accounts. One or more freelance brokers were in charge of these accounts. They accessed and withdrew client portfolios from their personal wallets. This resulted in the theft of digital assets exceeding $72 million. These wallets were managed using Liminal’s digital asset custody and wallet infrastructure. As a result of the attack, their ability to maintain 1:1 collateral with assets has been deeply impacted.

It seems like the brokers who introduced clients to the platform kept access to their accounts. Trading was done as normal, with clients being able to make huge profits on their investments. When any client wanted to make a withdrawal, they would have to complete the pre-withdrawal processes, like paying capital gains taxes and transfer/withdrawal charges. At this point, these brokers would intervene, pay the charges themselves and take the withdrawals into their personal accounts. It is suspected that some individuals from the frontline customer service of Cryptocurrency Algorithm are also involved in this and investigations are ongoing to check who is involved from within customer services

In response to this unfortunate incident, Cryptocurrency Algorithm has taken immediate and comprehensive action:

● Immediate response : We filed an online police complaint on the National Cyber Crime Reporting Portal and are processing a physical complaint.
● Client notification : We proactively reached out to these customers to instruct them not to provide access to anyone on their accounts and what the next steps would be to withdraw their funds securely.
● Assigning Representatives : Assigning the impacted clients to a dedicated representative who will instruct them on the next steps and help with client requirements.
● Bounty program : We started a bounty program to get back the assets that were stolen. People who give useful information that helps freeze and recover the stolen funds will be rewarded with up to $10,000 in USDT. We are offering 10%, i.e., up to $7.2 million, as White Hat Bounty.
● Suspension of deposits and withdrawals : To ensure the safety of your assets, we will be temporarily pausing crypto deposits and withdrawals for certain clients.

Next Steps:

● Ongoing analysis : We are looking at all the investigative data and working with experts to gain insight into the situation and come up with ways to fix it.
● Working on enabling withdrawals : We are actively working on enabling fund withdrawals. It takes time to do activities like investigative research and security checks. We would appreciate your patience as we solve this complex matter. We will always put the safety and protection of our users first.
● Further Updates : We will keep you updated with regular information as the project progresses. We are open, honest and eager to handle all your issues.
We have no control over this "force majeure" event. However, we are doing our best to find the stolen money and bring it back. Wallet Services has already stopped and tracked some funds. Unfortunately, we can't say anything else about this. We are taking advantage of the best tools and experts to get this resolved.