SecondFi Shuts Down After $2.6M ADA Theft Linked to Wallet Flaw

Cardano-based wallet SecondFi is shutting down due to a security breach that exposed flaws in its software. On Wednesday, the platform announced it will wind down SecondFi and Yoroi wallet services after attackers stole about 16.1 million ADA, worth roughly $2.6 million.

The breach was caused by a cryptographic flaw in the wallet's software and affected 374 wallets. An independent investigation by blockchain intelligence provider Groom Lake identified a sophisticated external actor behind the attack, which may be linked to North Korea's Lazarus Group, although no attribution has been confirmed.

SecondFi is developing a recovery tool based on zero-knowledge proofs to help affected users recover assets while limiting the information they need to share. The tool will be reviewed by a third-party auditor before its planned release in August.