Key Takeaways:
SecondFi will not resume normal operations after a security breach drained 16 million ADA from 374 Cardano wallet addresses, EMURGO said, shifting focus entirely to asset recovery.
"SecondFi will not resume normal operations" even after outside audits finish, EMURGO said in a statement. The company had initially outlined a two-week recovery plan after the exploit was detected.
The breach originated in SecondFi's native Cardano web wallet generation software. EMURGO said it has submitted a patch to close the identified vulnerability and hired multiple independent firms to review the incident. SlowMist founder Cos warned that actual losses could be higher if certain tracked addresses are confirmed as attacker wallets rather than victim addresses. SecondFi's own estimate placed the known affected amount near 16 million ADA.
EMURGO is prioritizing asset recovery over product operations, marking a permanent shift in SecondFi's role. The company plans to launch a quarantined site this week for wallet status checks, followed by secure wallet export functionality to help users migrate to hardware wallets or other platforms. An in-person migration workshop is scheduled in Tokyo. EMURGO warned users to follow only official channels, as scammers have targeted affected users with fake recovery links.
The company said it is working with Cardano ecosystem participants on an on-chain recovery system that must be auditable and persistent before returning assets. An external audit of the recovery system is required before funds can be released. EMURGO said it will publish a fuller account of "who, what, and why" after incident reports and code reviews are complete. Until then, SecondFi's role is limited to asset recovery and helping users migrate away from the platform.
The closure places SecondFi among several crypto projects that moved cautiously after security incidents. Taiko recently used a staged restart plan after a bridge attack, with outside experts reviewing fixes before wider access returned.
This article is for informational purposes only and does not constitute investment advice.
