SecondFi to Wind Down After $2.6 Million ADA Theft Tied to Wallet Flaw

Cardano wallet SecondFi said it will wind down its own service and the Yoroi wallet it took over, roughly a month after attackers exploited a flaw in its software to steal about 16.1 million ADA, worth around $2.6 million, from 374 wallets. The company confirmed the shutdown in an update this week, saying it will not resume normal operations even though the vulnerability has been patched.

The flaw let attackers derive users’ private keys from transaction data already visible on the Cardano blockchain. SecondFi stressed that the Cardano network itself was not compromised and that people using hardware wallets were unaffected. The service had earlier managed to secure 129 million ADA before attackers could reach it.

An independent investigation by blockchain intelligence firm Groom Lake, hired by Yoroi developer EMURGO, concluded the main attacker was sophisticated and well-funded. Some indicators point to North Korea’s Lazarus Group, though the firm said no attribution has been confirmed. A separate attacker went after another set of wallets during the same period.

The wind-down has frustrated users who were told relief was close. Back on June 27, SecondFi promised a recovery route within about two weeks. Nearly a month later, the tools are still not out. “But many of us were told our funds could be recovered within two weeks. Now we’re being asked to wait even longer,” one user wrote in reply to the update.

SecondFi now says it is building a zero-knowledge recovery tool and a wallet export function, both targeted for August, and that EMURGO has funded an asset recovery wallet. It has warned users to wait for official instructions, saying independent moves “create additional risks” for the claims process.

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