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SecondFi to shut down after $2.6 million ADA theft
SecondFi said the breach hit 374 wallets and plans an August release of recovery and wallet export tools after a zero-knowledge proofs based recovery option is tested and reviewed by a third-party auditor.
SecondFi will wind down its Cardano-focused services after attackers stole about 16.1 million ADA, worth roughly $2.6 million, the company said in an update published Wednesday. The platform linked the theft to a cryptographic flaw in its wallet software, and said the breach affected 374 wallets.
Cointelegraph reported that SecondFi said an independent investigation by blockchain intelligence provider Groom Lake identified indicators potentially tied to North Korea’s Lazarus Group, though no attribution has been confirmed. The company also said it is preparing to end SecondFi and Yoroi wallet services.
SecondFi said affected users are still awaiting recovery options after the exploit was first disclosed in late June, and that recovery tools and migration options are now targeted for release in August. The company said it is developing a recovery tool based on zero-knowledge proofs, which is still undergoing testing and will be reviewed by a third-party auditor before release.
In addition, SecondFi is preparing wallet export functionality so users can migrate assets to another service, and it did not announce a direct reimbursement plan. The update also reiterated earlier guidance that affected users should not restore recovery phrases into new Cardano wallets because moving funds elsewhere “does not mitigate the risk” while the investigation continued, according to Cointelegraph.