HermesVault Closes After $29,466 ALGO Theft Due to Security Flaw

HermesVault, a privacy protocol on the Algorand blockchain, has ceased operations following the theft of approximately 261,000 ALGO, valued at $29,466. According to NS3.AI, the breach was attributed to a flaw in the withdrawal verification script, which allowed the attacker to circumvent zero-knowledge verification. Lead protocol engineer Giulio Pizzini confirmed that the vulnerability has been addressed, and 230,000 ALGO has been refunded to affected users. Those who have not yet received the remaining 30,000 ALGO can apply for reimbursement by demonstrating address ownership and providing a secret note.