Cardano project SecondFi hacked: damage could amount to $20 million

A serious security incident hits SecondFi, a project within the Cardano ecosystem. The damage could potentially amount to over $20 million, with more than 129 million ADA and other tokens stolen. The cause lies in a flaw in the project’s own wallet software.

Cardano is available at OKX and Bybit.

Flaw in Own Wallet Software as Cause

SecondFi itself indicates that the cause of the incident can be traced to a problem in its own Cardano wallet generation software. The team states that it has mapped the full extent of the damage through an on-chain analysis. Additionally, SecondFi is working with a blockchain security company on an independent technical review.

SecondFi’s own preliminary estimate amounts to approximately 16 million ADA in total damage. That is already a heavy blow, but according to external experts, the actual situation could be much more serious. The Cardano price currently stands at $0,15. a decline of 1.1% in the past 24 hours.

SlowMist Sees Potentially Much Larger Damage

Cos (Yu Xian), founder of blockchain security company SlowMist, looks at a much bigger picture based on the money flows and wallet activity of the hacker. He states that the actual losses for users could theoretically exceed $20 million, involving more than 129 million ADA and other tokens.

Based on the behaviour of the suspicious addresses, Cos identifies two wallets that are likely owned by the hacker. If you want to know how to keep your own crypto wallet safe, it is wise to only trust reputable and well-tested software.