SecondFi to begin returning Cardano funds in two weeks
SecondFi found a recovery path and plans to start returning assets in about two weeks after a Cardano wallet exploit that affected roughly 16 million ADA in 374 addresses.
SecondFi’s developer Emurgo said forensic investigations are complete and a recovery path has been identified after a Cardano web wallet exploit. The breach affected roughly 16 million ADA across 374 addresses, valued at about $2.4 million at the time of disclosure.
Emurgo’s CEO Phillip Pon outlined a two-week timetable: the coming week will focus on building a technical fix and the following week on testing and security reviews before any funds are returned. Users were asked not to move assets or take independent actions that could interfere with the recovery process. Pon wrote, “Please refrain from migrating assets or taking actions outside official guidance. We will never ask users for private keys, seed phrases, wallet credentials or direct wallet access.”
The company traced the incident to an address-level flaw in the wallet generation software that exposed private keys. Emurgo has not yet published a full post-mortem describing the precise vulnerability or the attack method.
As an emergency step, the firm secured approximately 129 million ADA and transferred those holdings to an independent third-party custodian. Emurgo said those funds will remain with the custodian while verification and recovery work proceeds. Returns to affected users will follow completion of the build, testing and additional custodian verification, and will be carried out in a phased manner.
Emurgo also warned of fraud attempts tied to the recovery process. Malicious actors are circulating messages that impersonate the wallet and instruct users to submit wallet information or migrate assets. The company stated no recovery actions requiring user participation have begun and directed anyone needing help to submit a ticket through the wallet’s official support portal.
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