Algo Capital CTO will cover most stolen funds

Algo Capital CTO Pablo Yabo pledged to personally replenish most of the stolen funds from his phone being compromised. In a blog post on Medium, he took full responsibility for the incident, but says some of the funds will be covered by Algo Capital General Partners. 

Algorand and Tether coins were apparently stolen from his and the companies hot wallet within minutes. The coins were sent to various accounts, and then were withdrawn them to numerous exchanges. 

Yabo plans to now fully dedicate himself to Randlabs.io, a specialized team in Algo Capital where he will work on security features. 

What is Algo Capital

Algo Capital is a branch of the Algorand blockchain that focuses on their native currency. They raised over $200 million in venture capital and are hoping that the currency will be used as a means of payment. 

The Algorand blockchain brands themselves as “the first pure proof of stake blockchain platform.” Like Ethereum, they want people to build apps on top of their platform. Algo Capital and the currency is intended to help capture value on the blockchain. 

It is worth noting that Yabo touched on some of Algo Capital’s shortcomings in his post about the theft. 

“I will be fully committed to helping build a secure infrastructure that is immune to the security issues that have become the main barrier to mass adoption.”

How did it affect price?

ALGO has been dropping against the USD for months according to Coinbase charts. Price didn’t drop in any sort of significant manner after the event. Algo Capital’s currency also has not recovered since the announcement of Yabo covering funds. 

ALGOUSD price chart