SecondFi Halts Operations After 16M ADA Wallet Exploit, Shifts Focus to Recovery EMURGO has announced that SecondFi, a Cardano-based platform, will not resume normal operations following a security breach that drained 16 million ADA from 374 wallet addresses. The decision marks a shift from earlier recovery plans, with the project now prioritizing asset recovery and user migration over platform functionality. The exploit, traced to a vulnerability in SecondFi’s native Cardano web wallet generation software, prompted an immediate service pause and an ongoing investigation by multiple independent security firms. EMURGO has cautioned against releasing early findings, stating that incomplete audits could lead to misinformation, though a patch to address the flaw has been submitted. To assist affected users, EMURGO is rolling out checker tools, migration routes, and a recovery fund. A quarantined site, pending app store approval, will allow users to verify wallet status and initiate safe transfers. Additional support includes secure wallet export functionality and an in-person migration workshop in Tokyo. Users have been warned to rely only on official SecondFi channels, as scammers have exploited the incident with fake recovery accounts. While unaffected users remain secure, EMURGO has urged all SecondFi users to migrate away from the platform, as recovery efforts take precedence. An on-chain recovery system is in development, but its deployment hinges on external audits to ensure security particularly given threat actors’ awareness of the vulnerability. A full incident report, detailing the breach’s cause and impact, will be released once audits and code reviews are complete. Until then, SecondFi’s operations are limited to asset recovery and user support, aligning with a broader trend in crypto security where projects prioritize controlled, audited responses to breaches.