Cardano Wallet SecondFi Shut Down After $2.6M ADA Theft

SecondFi, a Cardano-based wallet, is shutting down after a security breach exposed issues around wallet security and left hundreds of users awaiting recovery options.

The attack resulted in the theft of approximately $2.6 million worth of ADA (approximately 16.1 million units) due to a cryptographic flaw in its wallet software.

An independent investigation by blockchain intelligence provider Groom Lake identified a sophisticated external actor behind the attack, with indicators potentially linked to North Korea's Lazarus Group, although no attribution has been confirmed.

The breach affected 374 wallets, and users are still waiting for recovery tools and migration options. SecondFi is developing a recovery tool based on zero-knowledge proofs, which will be reviewed by a third-party auditor before its planned release in August.