SecondFi confirmed its recovery process is still on the estimated two-week timeline following the exploit that drained about $2.4 million in ADA from Cardano wallets. The team said engineers are working on multiple technical routes simultaneously to choose the safest method for affected users.
Exploit details: 16 million ADA siphoned from 374 addresses
The attack occurred between June 21 and June 23, with roughly 16 million ADA stolen from 374 addresses, valued at approximately $2.4 million at the time. SecondFi linked the issue to its native Cardano wallet generation software. EMURGO CEO Phillip Pon said a forensic review was completed and a "clear recovery solution" had been found. The company expects one week to build the recovery system and another week for testing before returns begin. As an emergency measure, SecondFi also transferred about 12.9 million ADA to an independent third-party custodian to protect assets from further attacks.
Third-party report questions wallet code security
Security firm Tibane Labs traced the breach to an unaudited third-party SDK that replaced EMURGO's audited signing code on June 8. Researcher Taylor Monahan criticized SecondFi's wallet code, saying the project "rolled their own crypto." This added pressure given that Yoroi (now SecondFi) had served Cardano users for years before the rebrand. The full technical cause still awaits an official report from EMURGO or SecondFi.
Users await wallet checker and face new scam risks
SecondFi plans to release a wallet check tool early next week to help users determine if they are affected. The project stressed that no user-action recovery step has begun and warned against moving assets or sharing private keys, seed phrases, or credentials. Fake recovery accounts and phishing links have already targeted Cardano wallet holders post-exploit. SecondFi also advised users not to deposit more funds into existing SecondFi wallets until further notice. With ADA trading near multi-year lows, the case tests whether SecondFi can safely return funds while explaining what went wrong.