Algo Capital disclosed that wallets administered by its former CTO were compromised, resulting in the theft of about $1.9 million from fund, company, and personal holdings. The attacker gained access to recovery seed backup data after a sophisticated remote-access compromise of the administrator’s mobile phone, effectively turning cold-wallet material into usable hot-wallet access. Stolen Algos were believed to have moved to Binance deposit addresses, while USDT and personal Bitcoin transfers remained less fully traced. The incident highlights the operational risk of decrypted seed backups, mobile-device compromise, and recovery-material custody for cryptocurrency funds.