Crypto Wallet SecondFi to Return $2.4M After Hack — Recovery in 2 Weeks

A crypto wallet called SecondFi was hacked, and now it's promising to give users their money back within about two weeks.

SecondFi is a digital wallet (a software app for storing cryptocurrency) built for Cardano, a blockchain network whose coin is called ADA. Earlier this week, attackers exploited a flaw in the wallet and stole user funds.

Here are the key numbers:

• About 16 million ADA stolen, worth roughly $2.4 million at the time
• The theft hit 374 different wallet addresses (the unique IDs where crypto is stored)
• The company managed to protect another 129 million ADA through emergency action

The rescued 129 million ADA was moved to an independent third-party custodian (a trusted outside company that safely holds assets) and will stay there until everything is verified and returned.

So what went wrong? SecondFi says the problem came from how its wallet software generated addresses, which accidentally exposed users' private keys — the secret passwords that give full control over a crypto wallet. If someone steals your private key, they can take all your funds.

Phillip Pon, CEO of Emurgo (the developer behind SecondFi), said the team has finished its investigation and built a plan to return assets. The next week will be spent building the solution, followed by a week of testing before money goes back to users.

Important warning: SecondFi told users not to move their funds or take any action on their own, because doing so could mess up the recovery process. The company also warned about scammers pretending to be SecondFi. It stressed that it will never ask for your private keys, seed phrases (the recovery word list for a wallet), or passwords.

The bottom line: If you were affected, the safest move is to wait for official instructions and ignore any message asking for your wallet secrets. SecondFi has not yet released a full report explaining exactly how the hack happened.

This is an AI-generated summary. Read the original article at: https://cointelegraph.com/news/secondfi-two-week-recovery-cardano-wallet-exploit?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound