Cardano-based DeFi wallet platform SecondFi has decided to pull down the shutters to its operations, it announced on Wednesday. The decision comes a month after the protocol was hit by an attack leading to the loss of over $2 million wrapped as 16 million ADA tokens from 374 wallet. ADA is the native token of the Cardano ecosystem which, as of press time, was trading at $0.180 with a market cap of $6.5 billion.
A cryptographic flaw in the signature generation of the wallet software was exploited by malicious actors to execute the attack. SecondFi shared details from its investigation led by Groom Lake, an independent forensic investigation / blockchain intelligence provider.
“In simplified terms, a value that should have been derived from secret information could, under certain conditions, be computed from public transaction data,” the protocol said. “This could enable affected private key material to be derived from information visible on the public blockchain.”
While SecondFi said the flaw has been resolved, it said it has decided to kill its operations. The self-custodial neofinance platform that was rebranded from the Yoroi wallet, had made its services live in April 2026. Crypto spending, trading, earning, and saving were among services that SecondFi offered.
For now, the protocol said it will be initiating a recovery programme for users who lost their funds in the attacl.
“A secure recovery tool using zero-knowledge (ZK) proofs is being developed. The portal is designed to allow users to initiate the process directly while limiting the information required to do so. The tool is currently in testing, and we are engaging a specialist third-party auditor to review it before its anticipated release in August 2026,” the team noted.
According to a recent report by TRM Labs, the digital assets ecosystem lost $970 million to 207 exploits in the first half of 2026. The report said majority exploits targeted smart contract exploits on DeFi protocols, decentralized exchanges, and token projects.
SecondFi is not the only exploited protocol that has chosen to exit the DeFi sector amid back-to-back attacks and mounting losses. Earlier in June, Radiant Capital also announced the end to its operations 18 months after having lost $50 million in an exploit.
In recent days, Ostium Vault lost $18 million and BonkDAO was drained off $20 million in DeFi attacks.
