CoinDesk·14h ago·negative

Cardano wallet SecondFi loses $2.4 million in exploit, up to $20 million at risk

A flaw in SecondFi's wallet generation software let attackers drain 16 million ADA ($2.4 million) from 374 wallets. The team rescued another 129 million ADA, but SlowMist warns total losses could exceed $20 million.

Three separate attacks exploited a flaw in SecondFi's proprietary wallet generation software
16 million ADA ($2.4 million) drained from 374 user wallets
SecondFi rescued 129 million ADA by routing funds to a third-party custodian
SlowMist estimates total losses could exceed $20 million pending an independent audit
Moving seed phrases to another wallet does not protect affected users; they must file claims with SecondFi

securityImpact 6/10

Why our editor rated this negative

A wallet exploit that lost user funds is clearly negative for the crypto industry, highlighting ongoing security risks in self-custody tools.

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