Cardano Project SecondFi Losses Could Exceed $20 Million After Breach, Says SlowMist

Cardano ecosystem project SecondFi has identified the cause of its recent security breach as a vulnerability in its proprietary wallet-generation software. The team said it has completed an on-chain review to assess the extent of the incident and is working with a blockchain security firm to conduct an independent technical audit. Based on its initial findings, SecondFi estimates the damage at approximately 16 million ADA.

However, external analysis suggests the impact could be significantly greater. According to Cos (Yu Xian), founder of SlowMist, tracking of the attacker’s wallet activity and fund movements indicates that user losses may surpass $20 million. The analysis further suggests that more than 129 million ADA, along with other digital assets, could be connected to the incident.

Source: Cos (Yu Xian) and SecondFi