SecondFi Targets Recovery in Two Weeks Following $2.4 Million Cardano Wallet Exploit

Cardano wallet SecondFi is identifying a path to recovery for those affected by the Tuesday exploit. They expect that assets will be returned in two weeks after testing and security review.

On a Saturday statement Phillip Pon, CEO at Emurgo SecondFi, a developer of SecondFi, completed the forensic investigation and set up a recovery path for users affected. Pon stated that the next week will be devoted to building the solution. This is followed by a second week of testing, before the assets are returned.

Pon has urged its users not to migrate assets, or take actions that are outside the official instructions. The recovery process had been designed around the existing wallet states.

Emurgo from SecondFi shared a recent update about the recovery efforts of SecondFi’s wallet. Emurgo is the source.

SecondFi disclosed a security breach on Tuesday The incident affected 374 addresses and approximately 16,000,000 ADA (worth about $2.4million at the time). SecondFi had previously traced this incident back to a Cardano Web wallet software issue that affected users’ private keys.

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The company has also stated that they have secured around 129,000,000 ADA via emergency measures. They will transfer the funds to a independent third party custodian until verification and the recovery process are complete.

SecondFi is yet to publish a postmortem that explains the vulnerabilities or the method of exploit.

SecondFi alerts users to recovery scams

SecondFi has released an update separate from the one posted on Saturday. warned The recovery of the wallet is still underway, but malicious actors have been sending out fraudulent messages impersonating it. 

The company stated that there have not been any recovery activities requiring the participation of users and they will never require private keys or seed phrases from their wallets, nor direct wallet access.

SecondFi has said that any message instructing the user to migrate their assets, submit wallet data or take immediate actions outside of its verified channels should be considered fraudulent. 

Users who require assistance are encouraged to submit tickets through the official support portal as long as the recovery is ongoing.

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