Cardano ecosystem wallet provider SecondFi said about 16.1 million ADA, valued at roughly $2.6 million, was stolen because of an encryption flaw in its wallet software. The incident affected 374 wallets, and the company said it will gradually shut down both SecondFi and Yoroi wallet services. According to SecondFi, an independent investigation by blockchain intelligence firm Groom Lake found the attacker was a sophisticated external actor and identified indicators that may be linked to North Korea’s Lazarus Group, though attribution has not been confirmed. SecondFi is developing a zero-knowledge-proof-based recovery tool to help affected users recover assets while limiting the information they need to share. The tool is still being tested and is set to undergo a third-party audit before a planned August release. The company is also preparing a wallet export feature so users can move assets to other services. SecondFi has not announced a direct compensation plan or said whether it will use its own funds to reimburse users.
Cardano ecosystem wallet provider SecondFi said roughly 16.1 million ADA, worth about $2.6 million, was stolen because of an encryption flaw in its wallet software. The company said 374 wallets were affected.
SecondFi also said it will gradually shut down both SecondFi and Yoroi wallet services.
Investigation points to a sophisticated external actor
According to SecondFi, an independent investigation by blockchain intelligence firm Groom Lake concluded that the attacker was a sophisticated external actor. The investigation also found indicators that may be linked to North Korea’s Lazarus Group, but attribution has not been confirmed.
Recovery tool is still in testing
SecondFi said it is developing a recovery tool based on zero-knowledge proofs to help affected users recover assets while limiting the amount of information they need to share. The tool remains in testing and will undergo a third-party audit ahead of its planned release in August.
Export function in preparation, no compensation plan disclosed
The company is also preparing a wallet export feature that will allow users to migrate assets to other services.
SecondFi has not disclosed a direct compensation plan and has not said whether it will use its own funds to compensate users.
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