Cardano Wallet SecondFi Hit by $2.4 Million Exploit, up to $20 Million in User Funds at Risk
SecondFi said the flaw affected 374 wallets, and SlowMist estimated losses could exceed $20 million after the company secured 129 million ADA.
- On Tuesday, SecondFi, the Cardano wallet formerly known as Yoroi, patched a major exploit that drained roughly 16 million ADA, or approximately $2.4 million, from 374 user wallets across three separate attacks.
- The platform traced the root cause to a flaw in its proprietary wallet generation software, with the vulnerability existing at the address level where moving a seed phrase offers no protection.
- SecondFi confirmed on Wednesday that it triggered emergency measures to secure roughly 129 million ADA, which is being transferred to an independent third-party custodian and held for affected users pending verification.
- Cardano founder Charles Hoskinson clarified that SecondFi is not an Input Output Global product and stressed there is no ownership, control, or business relationship between the wallet and the company.
- Blockchain security firm SlowMist estimates total losses could exceed $20 million when accounting for the full range of compromised wallets and tokens, though this figure remains unconfirmed pending an independent audit.
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20 Articles
Cardano wallet SecondFi hit by $2.4 million exploit, up to $20 million in user funds at risk
SecondFi was hit by three separate attacks exploiting a flaw in its wallet generation software. A further 129 million ADA was secured by the team before attackers could reach it.
Cardano Ecosystem Project SecondFi $20 Potential Losses
A security incident involving SecondFi has intensified scrutiny of wallet infrastructure across the Cardano ecosystem. While preliminary estimates point to losses of up to 16 million ADA, independent analysis suggests the impact could be significantly larger, prompting ongoing investigations, audits, and renewed focus on wallet-generation security practices.
Cardano Users Are Facing New Security Concerns as ADA Falls to a Multi-Year Low
Key highlights:The ADA price has hit its lowest level since December 2020 after the SecondFi exploit.Loss estimates range from 16M ADA to over $20M, though Cardano itself was not breached.Traders are watching $0.1475 support as ADA remains over 95% below its 2021 peak.The ADA price is once again under pressure due to the discovery of an exploit related to SecondFi, a project of the Cardano ecosystem. The situation is causing new conversations to…
SecondFi Exploit Sparks $20M Loss Fears Across ADA
Key Takeaways: Certain Cardano wallets have been compromised in a wallet-level incident, said SecondFi. The staff of the team advised users to not enter recovery phrases into other Cardano wallets as there is still a risk at the address level. Security researchers believe the losses could reach over $20 million, making it one of the biggest wallet-related incidents on Cardano in history. User Score8.7 Follow us on Google News While upgrading wa…
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