SecondFi Partners With Cardano Foundation to Return $16.1M in Stolen ADA
The SecondFi wallet will permanently close its regular operations, but has presented a roadmap to compensate victims of the June cyberattack. In partnership with Input Output Group and the Cardano Foundation, the team will deploy the first Web3 compensation tool built on zero-knowledge (ZK) proofs, seeking to restore 16.1 million ADA (approximately $2.5 million) stolen from 374 users after an Android vulnerability was exploited.
Recovery Process Update
Work on the recovery process is continuing across several fronts. Here is where things stand and what to expect in the coming weeks:
1. Streamlined ticket submission (Available today)
We have streamlined the ticket claim submission process to make…
- SecondFi (@secondfiapp) July 27, 2026
The incident, attributed to the Lazarus Group, compromised the app’s software security without breaching the Cardano network. Despite the breach, containment measures managed to save 129 million ADA. The use of ZK technology sets a pioneering precedent for the market, as it will allow victims to prove ownership of their compromised addresses without exposing seed phrases or private keys.
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