SecondFi to shut down after $2.6M hack as recovery delays fuel backlash

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SecondFi, an ADA-based wallet service on Cardano, said it will shut down after about 16.1 million ADA, worth roughly $2.6 million, was stolen through an encryption flaw in its wallet software. The hack affected 374 wallets, and an investigation raised the possibility of links to Lazarus, a North Korean hacking group.

According to https://coinness.com/en/news/1163639

SecondFi is a self-custody crypto wallet and neofinance platform. It was launched in 2026 as the successor to the Yoroi Wallet, which was widely used in the Cardano ecosystem. The goal is to let users manage, spend, trade, and earn on their crypto while keeping full control of their private keys.

What is noncustodial wallet turning to? It will be a close source wallet. For those that have lost their wallet, I think the money is gone.

This give more information: https://cointelegraph.com/news/secondfi-shutdown-ada-theft-wallet-flaw

[Orpichukwu]

What is noncustodial wallet turning to? It will be a close source wallet. For those that have lost their wallet, I think the money is gone.

The money is gone? But they said they are still working on the recovery process, which is to kickstart by August; let’s still give them the benefit of the doubt till then.

But another question to ask is if there are ways for them to get affected users' information; it means they have logs and data backup, and they can also easily run the distribution to them while taking all the time to build something that they claim is only for the recovery of the lost funds. After all, they are not recovering the money from somewhere else; they are to pay from their own pocket.

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The money is gone? But they said they are still working on the recovery process, which is to kickstart by August; let’s still give them the benefit of the doubt till then.

They said it will only take two weeks., but after the two weeks, nothing happened and they said it will take more time and which will be in August.

Hackers are wise, let us see how the coins has not been lost. Why are they winding down now?

The money is gone? But they said they
But another question to ask is if there are ways for them to get affected users' information; it means they have logs and data backup, and they can also easily run the distribution to them while taking all the time to build something that they claim is only for the recovery of the lost funds. After all, they are not recovering the money from somewhere else; they are to pay from their own pocket.

I do not know but what I know is that there are many noncustodial wallets that I can not trust.

[Orpichukwu]

Hackers are wise, let us see how the coins has not been lost. Why are they winding down now?

If they don't have the money to pay, they should just say it. They can't possibly be expecting the investigators they have reported to help recover the money, even if some will be recovered in the future, which I doubt. They should first go through the help of the Cardano Foundation, which is working with them. return victims money.

I do not know but what I know is that there are many noncustodial wallets that I can not trust.

Especially those that are closed-source… and noncustodial are now built like an exchange indirectly with the type of inbuilt features they have.

[coinlary]

What is noncustodial wallet turning to? It will be a close source wallet. For those that have lost their wallet, I think the money is gone.

The money is gone? But they said they are still working on the recovery process, which is to kickstart by August; let’s still give them the benefit of the doubt till then.

Recovery process ??

There's only one way to recover, chain analysis and hope they found somestash on wallets that can be freezed /services that can be sued . Otherwise, there's nothing to recover.

What's planned for August is this : "zero-knowledge proof-based recovery tool and an asset transfer function", the loss is specifically  on Secondfi, all they are doing is just a make up to their customers before shutting it down entirely

But another question to ask is if there are ways for them to get affected users' information.

It's  a non custodial, I wonder  what other information they were collecting as a closed source wallet  From their statement, the process will require the topl they are launching.

 I don't know how it's intended to work for proof of ownership, probably a little search which I am lazy to do at the moment will help yet all  I believe  is the tool intended to help with proof & transfer of asset ownership from old to a new wallet.

Edit :
Alright decided to do the search  :

Asset recovery and safe migration
Our current priority is supporting affected users, assisting recovery efforts,  and enabling users to move assets securely.


1. Recovery tool: A secure recovery tool using zero-knowledge (ZK) proofs is being developed. The portal is designed to allow users to initiate the process directly while limiting the information required to do so. The tool is currently in testing, and we are engaging a specialist third-party auditor to review it before its anticipated release in August 2026.


2. Safe migration: In the meantime, we are preparing wallet export functionality designed to allow users to migrate their assets to a new wallet of their choice. We currently expect to release this functionality by early August 2026.

The reason for the delay is because it is still in development stage( testing stage? Pick one).