SecondFi to Begin Returns in About Two Weeks After $2.4M Cardano Exploit

Phillip Pon, CEO of SecondFi developer Emurgo, said the company completed forensic investigations and has identified a recovery pathway for users affected by Tuesday’s exploit. Emurgo plans to spend the coming week building the solution and another week testing it before beginning to return assets, following testing and security reviews.

SecondFi disclosed a security breach that affected approximately 16 million ADA, worth about $2.4 million at the time, across 374 addresses. The company traced the incident to an address-level issue in its Cardano web wallet generation software that exposed users’ private keys and said it secured roughly 129 million ADA through emergency measures, transferring those funds to an independent third-party custodian until verification and recovery are complete.

Pon urged users to refrain from migrating assets or taking actions outside official guidance, noting the recovery process was designed around existing wallet states and that independent action could complicate the secure return of funds.

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