EMURGO to Permanently Retire Hacked Cardano Wallet Service SecondFi

EMURGO, one of Cardano's founding entities, said Monday that SecondFi will not return to normal operations following a security compromise, even after completing audits. The company urged users to move their assets using the official recovery process. SecondFi is a rebranded version of the Yoroi wallet and, according to EMURGO, is Cardano's largest wallet provider. In an incident report dated June 25, EMURGO said SecondFi experienced four separate wallet theft incidents on June 22. The attacks affected 374 addresses and resulted in the loss of about 16 million ADA, valued at roughly $2.4 million at the time. EMURGO added that emergency actions helped secure approximately 129 million ADA. EMURGO warned that the impacted wallets should be treated as permanently compromised at both the address and private-key levels, and that importing affected mnemonic phrases into other wallets does not remove the risk. The firm said it plans to roll out an isolated wallet-status verification tool this week, followed by a secure export tool and in-person migration workshops in Tokyo. EMURGO is also setting up a dedicated recovery fund for an on-chain restoration system, with plans to return assets to affected users after an external audit.