SecondFi to shut down after $2.6M hack as recovery delays fuel backlash

SecondFi, an ADA-based wallet service on Cardano, said it will shut down after about 16.1 million ADA, worth roughly $2.6 million, was stolen through an encryption flaw in its wallet software. The hack affected 374 wallets, and an investigation raised the possibility of links to Lazarus, a North Korean hacking group. As a result, the SecondFi and Yoroi wallet services will be phased out. The company had initially pledged to support asset recovery within two weeks, but affected users have pushed back after the launch of a zero-knowledge proof-based recovery tool and an asset transfer function was delayed to August.