Cardano Wallet SecondFi to Shut Down Services After 16.1 Million ADA Theft

Cardano ecosystem wallet SecondFi said about 16.1 million ADA was stolen because of a software encryption flaw, and the platform will gradually shut down its SecondFi and Yoroi wallet services. According to Odaily, the incident affected 374 wallets. SecondFi said an independent investigation by blockchain intelligence firm Groom Lake identified the attacker as a sophisticated external actor and found indicators that may be linked to North Korea’s Lazarus Group, but attribution has not been confirmed. SecondFi is developing a zero-knowledge proof-based recovery tool to help affected users recover assets and limit the information they need to share. The tool is still in testing and will undergo a third-party audit before its planned release in August. SecondFi is also preparing a wallet export feature that will let users move assets to other services. The platform did not announce a direct compensation plan or say whether it will use its own funds to reimburse users.