SecondFi Aims for Two-Week Recovery After $2.4M Cardano Wallet Breach

SecondFi, the self-custody wallet for Cardano (CRYPTO:ADA), expects to restore funds lost in a security breach within two weeks. The breach occurred on June 2026 and affected 374 wallet addresses, resulting in the theft of approximately 16 million ADA, worth around $2.4 million.

The attackers exploited a vulnerability in SecondFi's wallet generation software that allowed them to reconstruct private keys using publicly available blockchain data. Emurgo CEO Phillip Pon stated, 'We've identified a clear recovery solution tailored to the current wallet states.'

SecondFi is currently building a recovery mechanism and has engaged an external accounting firm to verify protected funds. The company has secured approximately 129 million ADA with an independent third-party custodian.

The operations remain paused while the recovery process continues, and SecondFi advises affected users not to import recovery phrases into other Cardano wallets or move funds independently. Blockchain security firm SlowMist estimated the total impact could exceed $20 million when including other digital assets and NFTs beyond the confirmed ADA losses.