SecondFi will not be reopened following breach in Cardano wallet
July 6, 2026
Following a recent security incident with a Cardano wallet, EMURGO has made the decision that its platform, SecondFi, will not be returning to regular operations. This announcement comes despite ongoing audits that are in progress. In response to the breach that resulted in the theft of 16 million ADA from 374 compromised wallet addresses, EMURGO is taking steps to assist affected users. The company is focusing its efforts solely on asset recovery for those impacted, marking a shift from previous recovery plans.
In a tweet on July 6, 2026, EMRUGO stated, “SecondFi will not resume normal operations.” Users were advised to migrate away from the platform using official methods, including safer wallet options. While unaffected users are considered safe for now, EMURGO emphasized the importance of prioritizing the recovery process over the platform’s operations. The company has engaged multiple independent firms to conduct reviews of the event and the underlying code, cautioning against premature publication of findings that could lead to misinformation.
EMURGO has taken steps to address the breach, acknowledging that a patch has been submitted to address the identified vulnerability. Despite ongoing audits and patchwork, the company has urged all users to transition away from SecondFi as asset recovery takes precedence. Plans are in place to provide checker tools, migration routes, and a recovery fund to support affected users. EMURGO has also indicated that a quarantined site will be launched to allow users to check wallet status and initiate migration procedures.
In addition to the tools being developed, an in-person migration workshop is set to take place in Tokyo. EMURGO is working on implementing a secure wallet export functionality to facilitate the migration of users to hardware wallets or other platforms. The company is also collaborating with Cardano ecosystem participants to establish an auditable on-chain recovery system to safely return affected assets. It stressed the need for external audits of the recovery system to ensure security and prevent potential threats from exploiting the vulnerability.
As EMURGO continues to navigate the aftermath of the security incident, it remains committed to transparency and providing updates as the situation evolves. SecondFi’s role has shifted to prioritizing asset recovery and assisting users in migrating away from the platform. Stay tuned for further developments as EMURGO works to address the aftermath of the Cardano wallet breach.
