SecondFi Gradually Shuts Down Wallet Services After $2.6 Million ADA Theft

Cardano ecosystem wallet SecondFi is gradually shutting down its wallet services, including SecondFi and Yoroi, after a software encryption flaw led to the theft of approximately 16.1 million ADA, valued at around $2.6 million. The incident affected 374 wallets. An independent investigation by blockchain intelligence firm Groom Lake identified the attackers as sophisticated external actors and found indicators potentially linked to North Korea's Lazarus Group, although attribution has not yet been confirmed. SecondFi is developing a recovery tool based on zero-knowledge proofs to help affected users recover their assets while limiting the information that needs to be shared. This tool is still in testing and will undergo third-party audits before its planned release in August. SecondFi is also preparing a wallet export feature that will allow users to migrate their assets to other services. The platform has not announced any direct compensation plans and has not specified whether it will use its own funds to reimburse users.

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