Woofun AI reports that SecondFi confirmed the root cause of its security incident lies at the address level, advising users against restoring mnemonic phrases to other wallets as this triggers risks during transaction signing. The project has deployed patches for unaffected wallets and stated that normal operations will resume soon.

During the incident, external attackers transferred approximately 16 million ADA from 374 addresses across four separate events. To mitigate further losses, SecondFi executed an emergency transfer of roughly 129 million ADA to an independent third-party custodian. The team engaged an external accounting firm for a special audit to facilitate asset verification and return, urging users to submit tickets rather than follow community advice.