Cardano Project SecondFi Says Hack Losses May Exceed $20 Million
Summary
- SecondFi said the security incident was caused by a vulnerability in its Cardano wallet-generation program, resulting in losses of about 16 million ADA.
- SlowMist's Cos said on-chain analysis showed user losses from the hack could theoretically exceed $20 million.
- Cos said losses tied to the incident could include as much as 129 million ADA and other tokens, and that the exact amount will be disclosed after the technical audit is completed.
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SecondFi, a project in the Cardano ecosystem, said a recent security breach stemmed from a flaw in its proprietary wallet-generation software, with one analysis suggesting 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 in-house 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 losses from the incident at about 16 million ADA.
SlowMist founder Cos, also known as Yu Xian, said the actual damage could be much larger. Based on his analysis of the hacker's fund flows and wallet activity, user losses could theoretically top $20 million.
Cos said losses tied to the incident could include as much as 129 million ADA and other tokens, far above SecondFi's initial estimate.
SecondFi is continuing to investigate the scope of the damage and the cause of the breach. The exact amount of losses will be disclosed after the technical audit is completed.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
