SecondFi Freezes Transactions After $16M ADA Incident, Launches Quarantine Recovery Mode

Key Takeaways:

• All transfers, swaps and fund movements have been turned off by SecondFi and they are now in “quarantine mode”.
• Following the security incident that resulted in the loss of nearly $16 million worth of ADA, the platform is working on wallet recovery and migration tools.
• Users are encouraged not to use unofficial links and wait for official recovery directions.

User Score

8.7

    Follow us on Google NewsAfter responding to a serious security incident affecting some of their Cardano-based ecosystem, SecondFi has temporarily suspended a key feature of its core wallet. At present, users can check their balance and wallet address, but all activities have either been suspended or limited.

Read More: SecondFi Exploit Sparks $20M Loss Fears Across ADA

Table of Contents

• SecondFi Activates Quarantine Mode
• Recovery Tools and Migration Plans Underway
  • Wallet Export Feature Coming Next Week
  • $16M ADA Attack Remains the Focus

SecondFi Activates Quarantine Mode

SecondFi says on its update that the application is still available and we will not be able to send, swap, or transfer our assets. The containment shift is a component of a wider containment approach that is performed as the team conducts its ongoing investigations and recovery.

The company stressed that users should take no independent recovery actions at this stage. Rather, the impacted are being advised to open support tickets on the official support page and await evacuation guidance.

SecondFi also noted that scammers are aggressively attacking users via fake websites and emails and social media accounts. The team restated that it will never ask for anyone’s private keys, seed phrases or wallet credentials.

Read More: SecondFi Exploit Exposes Private Keys as ADA Wallet Flaw Puts Millions at Risk

## Recovery Tools and Migration Plans Underway

SecondFi explained a graduated process for a safe wallet recovery for users to check if he had his wallet back and move their funds later.

Wallet Export Feature Coming Next Week

First, a new wallet feature is called Quarantine Mode, where users will be able to check and see if they are involved in any information linked to any incident in the world, and report any problems to support.

Another development is likely to be the launch of a secure wallet export system that will enable users to transfer assets securely to hardware wallets or other platforms. Despite an advanced technical audience, this option is important for people who do not have the technical expertise, the company said.

Also, SecondFi is in the process of creating an on-chain claims portal and a recovery mechanism which could incorporate zero-knowledge proof technology. The goal is to verify eligibility while protecting user privacy throughout the claims process.

$16M ADA Attack Remains the Focus

Earlier this week, SecondFi announced that three different hacks by outsiders caused losses of around 16 million ADA for the wallet. The platform and members of the wider Cardano community have set up a dedicated recovery fund for the impacted users.

Assets acquired through emergency response will continue to be safeguarded and come into play in recovery activities as the team says.

Several security vendors are investigating the incident and source code. This is because SecondFi has said it won’t release the preliminary results until those investigations have concluded.

One of the biggest changes will be that SecondFi will not resume regular operations once their audits are completed.