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SecondFi to shut down after exploit theft of 16.1 million ADA
The theft came from a vulnerability in SecondFi transaction signing software that allowed attackers to derive private keys from public Cardano blockchain data.
SecondFi, the Cardano wallet service, said it will shut down after an exploit enabled attackers to steal 16.1 million ADA, worth about $2.4 million, from 374 wallets. The service replaced EMURGO’s Yoroi wallet and said it will not resume normal operations even though it patched the vulnerability.
According to CoinDesk, the breach was tied to a flaw in SecondFi’s transaction signing software. The issue let attackers derive private key material from transaction data visible on the Cardano blockchain, while SecondFi said the Cardano network itself was not compromised and hardware wallet users were not affected.
SecondFi said it will release wallet export tools in early August and a zero-knowledge recovery portal later that month, though it did not provide a specific distribution date for any recovered funds. EMURGO has funded an asset recovery wallet, but a firm distribution timeline has not been set.
Blockchain intelligence firm Groom Lake, hired by EMURGO, concluded the main attacker was sophisticated and well funded, with some indicators pointing to North Korea’s Lazarus Group, though no attribution has been confirmed.