SecondFi, a Cardano wallet platform, has introduced a three-stage roadmap to address the aftermath of its June 2026 security breach, during which hackers stole 16.1 million ADA from 374 user
SecondFi, a Cardano wallet platform, has introduced a three-stage roadmap to address the aftermath of its June 2026 security breach, during which hackers stole 16.1 million ADA from 374 user wallets. The loss was estimated at $2.5 million at the time of the attack.
All regular operations at SecondFi have been permanently discontinued following the incident. The project’s resources are now solely dedicated to withdrawing residual assets and compensating affected users.
To facilitate this process, the SecondFi team has announced a collaboration with Input Output Group, a leading blockchain research and engineering company, and the Cardano Foundation. Their joint effort is producing the first Web3 compensation mechanism to employ zero-knowledge proofs, which will support secure and private claims processing.
SecondFi managed to protect 129 million ADA by promptly transferring funds to custodial storage soon after the hack occurred. This preemptive move preserved a significant pool of assets to support compensation efforts.
According to the roadmap, the recovery plan is divided into three key phases.
The first stage, claim submission, is already available. SecondFi has integrated a straightforward ticket system within its app. Affected users are instructed to update to the latest application version and submit their claims directly through this system.
In the second stage, set for mid-August, a dedicated migration tool will allow users to automatically withdraw their assets. This tool will perform tasks such as unstaking ADA and transferring coins, tokens, and NFTs to any Cardano wallet specified by the user. Users are cautioned against deleting their SecondFi wallets or uninstalling the app during this stage to avoid complicating the recovery process. The migration tool is currently undergoing an external security audit to verify its effectiveness and safety.
The third and primary phase, planned for early September, will launch a zero-knowledge refund portal. This tool leverages zero-knowledge proofs to let affected users demonstrate ownership of compromised wallets and claim compensation without revealing sensitive data like seed phrases or private keys. Throughout August, this portal will be subjected to rigorous cryptographic audits and additional testing.
Mini dictionary: Zero-knowledge proofs (ZKPs) are cryptographic methods that enable one party to prove to another that a statement is true without revealing any additional information apart from the fact that the statement is indeed true. In blockchain, ZKPs provide privacy and security enhancements, helping users verify ownership or data validity without exposing private details.
StageTimelineMain ActionClaim submissionAvailable nowUsers submit claims via appMigration toolMid-AugustAutomatic asset withdrawal and transferZK refund portalEarly SeptemberPrivate claims using zero-knowledge proofsReports have emerged of malicious actors attempting to exploit the situation by distributing fake browser extensions and impersonating support staff in private messages.
SecondFi has cautioned users to avoid unsolicited messages and only trust extensions provided through the official Chrome Web Store, identifiable by a blue verification badge. All web links should be accessed via the official SecondFi website to ensure authenticity.
SecondFi, in coordination with industry partners, has prioritized the safety of affected users by innovating a zero-knowledge proof refund solution, while warning that the team never initiates contact first and only verified channels should be used to access support or resources.
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