SecondFi Shuts Down After $2.6M ADA Wallet Hack

Cardano wallet provider SecondFi announced it will shut down its service and the Yoroi wallet it previously acquired. This decision comes roughly one month after hackers exploited a software flaw to steal about 16.1 million ADA, valued at roughly $2.6 million, from 374 user wallets. The company confirmed operations will not resume, even though engineers have already patched the vulnerability.

Investigators found that the flaw allowed attackers to figure out private keys using transaction data visible on the Cardano blockchain. SecondFi clarified that the main Cardano network remained secure and users relying on hardware wallets avoided any losses. Blockchain intelligence firm Groom Lake, hired by Yoroi developer EMURGO, led an independent investigation and noted the primary attacker was well funded, pointing to possible links to the Lazarus Group.

Affected users are currently frustrated because recovery tools are taking longer than expected. SecondFi initially promised a recovery plan within two weeks, but those tools are still delayed. The team is now building a zero knowledge recovery tool and a wallet export feature targeted for August, while warning users to wait for official instructions to avoid extra risks.