Cardano’s SecondFi Says Wallet Software Flaw Caused Hack; Losses May Exceed $20 Million
Summary
- SecondFi, a Cardano ecosystem project, said a flaw in its proprietary wallet-generation software caused the hack.
- SecondFi said it estimates the incident caused losses of about 16 million ADA.
- SlowMist founder Cos said related losses could reach as much as 129 million ADA and other tokens, theoretically exceeding $20 million.
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SecondFi, a project in the Cardano ecosystem, said a recent security breach was caused by a flaw in its proprietary wallet-generation software. Separate analysis suggests total losses may exceed $20 million.
Wu Blockchain reported on June 23 that SecondFi’s investigation found a vulnerability in a Cardano wallet-generation program developed by the project caused the hack.
SecondFi said it is using on-chain analysis to determine the full extent of the damage. It is also conducting an independent technical audit with an external blockchain security firm. The project estimates the incident resulted in losses of about 16 million ADA.
Cos, founder of security firm SlowMist, said the actual losses could be much higher. Based on his analysis of the hacker’s fund flows and wallet activity, user losses could theoretically exceed $20 million.
He added that assets tied to the incident may include 129 million ADA and other tokens, far above SecondFi’s initial estimate.
SecondFi is continuing to investigate the scope of the breach and its cause. The exact amount of losses will be disclosed after the technical audit is completed.
