SecondFi to Shut Down Following $2.6 Million ADA Wallet Breach

Cardano-based wallet provider SecondFi announced it will wind down its services, including its Yoroi wallet, after a security flaw led to the theft of roughly 16.1 million ADA, valued at about $2.6 million. The decision follows weeks of delays in helping affected users recover their funds.

Details of the Breach

An independent investigation identified a sophisticated external actor behind the attack, with some indicators potentially connecting to a known North Korean hacking group, though this has not been officially confirmed. The exploit affected 374 wallets and stemmed from a cryptographic vulnerability in the platform’s software.

Recovery Tools Still in Development

SecondFi said it is building a recovery tool using privacy focused verification technology to help victims reclaim assets without exposing sensitive information. The tool remains under testing and awaiting third-party review, with a release now targeted for August. The company is also preparing a wallet export feature to help users migrate funds elsewhere, though no formal reimbursement plan has been announced.

User Frustration Grows Over Delays

The platform originally told users recovery could begin within about two weeks of the breach, but that timeline has since been pushed back multiple times, leading to public frustration among affected users still waiting for clear next steps. SecondFi has not yet responded to requests for further comment on compensation plans.