Woofun AI reports that SecondFi is ceasing operations for its SecondFi and Yoroi wallet services after a cryptographic flaw enabled the theft of approximately 16.1 million ADA, valued at $2.6 million. The incident compromised 374 wallets, with blockchain intelligence firm Groom Lake identifying indicators potentially linked to the Lazarus Group, though attribution remains unconfirmed.

SecondFi is engineering a zero-knowledge proof-based recovery tool to assist users in reclaiming assets while minimizing data exposure. This solution is currently undergoing testing and third-party audits ahead of an anticipated August launch.

Additionally, a wallet export feature will be introduced to facilitate asset migration to alternative platforms. No direct compensation strategy or use of platform funds has been disclosed.