SecondFi, a Cardano wallet provider, has introduced a detailed plan for compensating users affected by a June 2026 security breach. The company confirmed it will permanently cease regular ope
SecondFi, a Cardano wallet provider, has introduced a detailed plan for compensating users affected by a June 2026 security breach. The company confirmed it will permanently cease regular operations and shift all resources to asset withdrawal and user compensation.
In an unprecedented move, SecondFi is collaborating with Input Output Group and the Cardano Foundation to launch the first Web3 compensation tool utilizing zero-knowledge proofs. This mechanism aims to allow eligible users to claim funds securely without revealing sensitive information such as seed phrases or private keys.
SecondFi, founded to provide a secure and user-friendly Cardano wallet experience, became the target of a sophisticated attack in June that significantly impacted its operations and user trust.
Zero-knowledge proofs are cryptographic techniques enabling one party to prove possession of certain information without disclosing that information itself. In this context, the method will help verify affected wallet ownership for compensation disbursement.
Mini dictionary: Zero-knowledge proofs (ZKPs) are advanced cryptographic protocols that allow one party to prove possession of certain information to another party without revealing that information, widely used to enhance privacy and security in blockchain applications.
The June 2026 attack led to the theft of 16.1 million ADA, estimated at $2.5 million, from 374 user wallets. The incident was linked to the Lazarus Group, a well-known cybercrime organization, which exploited a security flaw in the Android version of SecondFi’s app to extract users’ private keys.
Despite this, SecondFi’s team managed to safeguard 129 million ADA by transferring funds to secure custodial wallets, preventing further losses during the breach.
EventADA AffectedUSD EquivalentWallets ImpactedHacked16.1 million$2.5 million374Funds Secured Post-Attack129 millionN/AN/AThe published roadmap outlines the recovery steps as follows. The first stage is claims submission, which is already live. Affected users are instructed to update their applications to the latest version and submit a claim through a new ticket system interface.
The second stage, scheduled for mid-August, involves a migration tool that will unstake ADA and transfer all assets—including tokens and NFTs—to a destination Cardano wallet chosen by the user. The migration utility is ready and currently undergoing an external security audit. Users are advised not to delete their SecondFi wallet or uninstall the app at this time to prevent complications in the recovery process.
The third and final stage, expected in early September, centers around the ZK refund portal. This portal will employ zero-knowledge proofs to authenticate wallet ownership, enabling users to claim compensation securely. The solution will undergo further cryptographic audits and testing throughout August.
SecondFi, alongside the Cardano Foundation and Input Output Group, is introducing a zero-knowledge-proof-based compensation portal that allows users to confirm their ownership of compromised wallets and receive refunds, all without disclosing sensitive credentials.
As SecondFi closes regular operations, scammers have attempted to exploit the situation by distributing fake browser extensions and impersonating support staff through private messages. The team continues to warn users against these fraudulent activities.
SecondFi emphasizes that official communication will never initiate contact with users. The only legitimate extension is available via the Chrome Web Store and features a blue verification badge. Users should access links exclusively from SecondFi’s official website to avoid falling victim to scams.
Official representatives urge users to disregard unsolicited messages and validate all extensions and communications directly through the official channels.
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