SlowMist: SecondFi Cardano Wallet Losses Could Top $20M
Cardano ecosystem project SecondFi has issued an update on its recent security incident, saying the root cause has been traced to its wallet generation software. The team estimated losses at about 16 million ADA and urged users to move funds to newly created wallets while its review continues.
Blockchain security firm SlowMist offered a higher potential estimate. Founder Cos (Yu Xian) said that based on analysis of suspected hacker-related addresses and on-chain fund flows, total user losses could theoretically exceed $20 million, potentially involving more than 129 million ADA and other tokens. He noted the figure is not confirmed and remains subject to further verification.
SecondFi said roughly 16 million ADA was transferred out across three attacker-initiated transfer events that affected 374 addresses. The project added that it has completed on-chain analysis and is working with a blockchain security firm on an independent technical review to validate its findings.
SecondFi also disclosed it executed an emergency transfer of about 129 million ADA to an independent third-party custodial institution during the incident, citing the move as a safeguard for user assets and a way to reduce the risk of additional losses. Investigators continue to assess the full scope of affected wallets and assets.
The project said the impact was limited to its native Cardano web wallet generation component and did not extend beyond that. SecondFi reported that patches have been deployed for unaffected wallets and that normal operations are expected to resume shortly.
A final technical report and any compensation framework have not yet been announced. Until the review is completed, affected users are watching for conclusions that confirm the extent of impacted assets and validate the project's assessment.
Security teams involved in the review continue to advise users to transfer assets to new wallets, calling fund migration one of the most effective steps to reduce further risk. Users have also been encouraged to monitor wallet activity, follow official updates on the investigation, and verify the source of any wallet generation tools they used.
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