According to CoinDesk, the Cardano wallet SecondFi was compromised due to a vulnerability in its transaction signing software, resulting in the theft of 16.1 million ADA (approximately $2.4 million) from 374 wallets, prompting the platform to announce its permanent shutdown. The vulnerability allowed attackers to derive private keys from transaction data visible on the blockchain; the Cardano network itself was unaffected, and hardware wallet users were not impacted. Investigation by Groom Lake, a blockchain intelligence firm hired by EMURGO, revealed that the primary attacker exhibited sophisticated techniques and substantial funding, with some indicators pointing to North Korea’s Lazarus Group, though no formal confirmation has been made. SecondFi plans to release a wallet export tool in early August and a zero-knowledge recovery portal later that month. EMURGO has established an asset recovery wallet, with distribution timing to be determined.
Cardano Wallet SecondFi Shuts Down Permanently After Hack Steals $2.4M in ADA
TechFlowShare
Summary
The SecondFi Cardano wallet announced its permanent shutdown following a crypto hack that exploited a transaction signing vulnerability, stealing 16.1 million ADA ($2.4 million) from 374 wallets. Attackers derived private keys from on-chain data, but hardware wallets and the Cardano network were unaffected. Groom Lake, hired by EMURGO, traced the breach to a sophisticated group potentially linked to Lazarus. SecondFi will release a wallet export tool in early August and a zero-knowledge recovery portal later. EMURGO has established a recovery wallet, with distribution plans to follow.
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