SecondFi will permanently close its Cardano wallet while prioritizing user compensation through a structured three-stage ADA recovery and migration process. Developers secured 129 million ADA
SecondFi will permanently shut down its Cardano wallet as the team shifts all remaining resources toward recovering stolen assets and compensating affected users. Rather than restoring normal operations, the developers have introduced a structured recovery plan designed to help users safely withdraw their funds following the June security breach.
According to SecondFi, the recovery effort includes support from Input Output Group and the Cardano Foundation, which are developing a zero-knowledge proof compensation system that will allow users to verify ownership of compromised wallets without exposing seed phrases or private keys.
The initiative follows the June 2026 exploit that affected 374 SecondFi wallets, where attackers stole 16.1 million ADA, worth about $2.5 million, by exploiting a vulnerability in the Android version of the wallet.
Developers linked the attack to the Lazarus Group and explained that the flaw allowed attackers to derive users’ private keys. However, the team secured another 129 million ADA by moving unaffected assets into custodial storage before further losses occurred.
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SecondFi has already launched the first stage through an updated application featuring a simplified claims system. Affected users must update the wallet before submitting their recovery requests through the integrated portal.
Additionally, the second stage will introduce an automated migration tool in mid-August. The utility will unstake ADA and transfer coins, tokens, and NFTs to another Cardano wallet selected by the user. Developers also urged users not to uninstall the application or delete their existing wallet before completing the migration process because doing so could complicate recovery.
The final stage will introduce a zero-knowledge proof refund portal in early September. The platform will undergo independent cryptographic audits throughout August before becoming available.
Meanwhile, SecondFi warned users about phishing attempts linked to its shutdown. The team stressed that it never contacts users through private messages and advised downloading browser extensions only from the verified Chrome Web Store listing. Users should also verify every recovery link through SecondFi’s official website before taking any action.
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The post SecondFi Shuts Down Cardano Wallet as Team Rolls Out Three-Step ADA Recovery Plan appeared first on 36Crypto.
