SecondFi Maps $2.4M ADA Recovery Within Two Weeks After Wallet Exploit

According to EMURGO CEO Phillip Pon on Saturday, the company has identified a recovery solution for the $2.4 million SecondFi wallet exploit and targets returning funds within two weeks. EMURGO completed its forensic investigation and validated wallet balances, with one week to build the recovery mechanism and another to test it before returns begin. Pon advised affected users not to move funds or take steps outside SecondFi's official guidance, emphasizing that the company will never request private keys or seed phrases.

The exploit affected 374 addresses between June 21 and 23, with attackers draining approximately 16 million ADA. A technical analysis attributed the breach to an Ed25519 signing error in the wallet's software that exposed users' private keys, rather than EMURGO's audited implementation. EMURGO notified law enforcement and has engaged an external accounting firm to verify holdings.