SecondFi to wind down after $2.6M ADA theft linked to wallet flaw

Written by Helen Partzstaff writerReviewed by Yohan Yunstaff editorWritten by Helen Partzstaff writerReviewed by Yohan Yunstaff editorSecondFi to wind down after $2.6M ADA theft linked to wallet flawLatest NewsPublishedJul 22, 2026SecondFi will wind down after a $2.6 million ADA theft, while users still await recovery tools that were initially expected within weeks of the exploit.Cardano-based wallet SecondFi is preparing to shut down after a security breach exposed issues around wallet security and left hundreds of users awaiting recovery options.SecondFi said it will wind down SecondFi and Yoroi wallet services after attackers stole about 16.1 million ADA, worth roughly $2.6 million, due to a cryptographic flaw in its wallet software, according to an update published on Wednesday.The platform said an independent investigation by blockchain intelligence provider Groom Lake identified a sophisticated external actor behind the attack and found indicators potentially linked to North Korea’s Lazarus Group, although no attribution has been confirmed. It added that the breach affected 374 wallets.The update came nearly a month after SecondFi first disclosed the exploit in late June, with affected users still waiting for recovery tools and migration options that the company says are now targeted for release in August.SecondFi plans recovery tools as users await next stepsSecondFi said it is developing a recovery tool based on zero-knowledge proofs to help affected users recover assets while limiting the information they need to share. The tool is still undergoing testing and will be reviewed by a third-party auditor before its planned release in August.The platform is also preparing wallet export functionality that will allow users to migrate assets to another service. SecondFi did not announce a direct reimbursement plan or say whether it would compensate users from its own funds.Users question recovery timeline as SecondFi winds downSecondFi’s latest update has drawn…

SecondFi to wind down after $2.6M ADA theft linked to wallet flaw

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