Cardano's recent decline has intensified, with market sentiment further weakened by a security incident within its ecosystem, in addition to the broader crypto market downturn. Approximately 16 million ADA, equivalent to around $2.4 million according to the report, were reportedly stolen from compromised wallets. Following the incident, ADA's cumulative decline this month has approached 15%.
More than 370 addresses affected
This incident is related to the SecondFi wallet infrastructure. Early information suggests that a vulnerability may have occurred during wallet generation, leading to the exposure of private keys, which allowed attackers to access multiple wallet addresses. Reports indicate that over 370 affected addresses were involved.
Security agencies initially warned that potential exposure could exceed 129 million ADA and affect other assets. This claim quickly sparked panic within the Cardano community, prompting users to be advised to pause interactions with the associated wallets.
Some high-risk assets have been transferred and protected.
As the situation spread, ecosystem participants began addressing risky assets. Subsequent updates revealed that approximately 129 million ADA initially deemed at risk have been moved to safer locations and may be returned to affected users in the future. This development has eased market concerns about the worst-case scenario, but has not fully repaired the emotional impact.
The SecondFi development team has reportedly deployed a security patch and temporarily suspended services during the investigation. The team also stated that they plan to compensate affected users and restore services after completing the security upgrades.
Hoskinson responded that the chain itself was not affected.
Cardano's founder, Charles Hoskinson, also responded, stating that the wallets and related infrastructure were affected, but the Cardano blockchain itself was not compromised. However, he acknowledged that actual user losses have occurred, which still puts pressure on holders' confidence.
From a market performance perspective, ADA was already in a prolonged decline when the incident occurred, and the security breach further intensified selling pressure. According to the original text, ADA briefly dropped to around $0.15, nearly halving from its peak at the end of 2025.
In the short term, market attention remains focused on two key issues: whether the affected assets can be successfully returned, and whether confidence in the Cardano ecosystem can gradually recover once wallet services are restored. If selling pressure continues, ADA may remain under pressure; however, if the secure resolution progresses smoothly, market sentiment has the potential to gradually stabilize.