During his X Spaces session, Hoskinson passed on information that he received from someone named “Jer” who participated in a meeting between Cardano’s governing body, Intersect, and SecondFi developers: “A member of the EMURGO team said the identity of the white hat hacker is not known to EMURGO, or at least EMURGO said it is not affiliated with EMURGO.”
Even though the attack didn’t violate the Cardano protocol and the vulnerability was entirely at the wallet application layer, the damage to the reputation of the market is serious, and the pricing is reflecting it accordingly. Since the attack, ADA’s price has dropped 21%, and it is trading at approximately $0.145.
SecondFi Breach
SecondFi is a self-custody Cardano wallet platform developed by EMURGO. It confirmed a security incident caused by a flaw in its proprietary wallet-generation software. Three attackers stole around 16 million ADA ($2.4 million) from 374 user addresses across four different draining events.
Currently, the disputed 129 million ADA was transferred by SecondFi, which took an emergency measure to protect user funds, with the assets moved to an independent third-party custodian while looking for a solution.
The platform will not continue operations until outside security firms complete a full code-level review. Formal incident reports are being filed with relevant authorities, and the team has said it will pursue all available legal options to recover stolen funds.
The company suggests that users should submit support tickets only through official channels. It has confirmed it will never request private keys, seed phrases, or direct wallet access, and has warned that malicious actors are actively impersonating SecondFi via fraudulent messages and fake support accounts.
Lastly, SecondFi stated on 26th of June that it will return lost user assets within two weeks. It has warned users that this period is not guaranteed and they should not move funds to new wallets in the meantime due to additional risks.
Cardano Slides to Five-Year Low
ADA is down 21% over two weeks, trading near $0.145 and well below all major moving averages. The Relative Strength Index (RSI) is at 29, close to oversold territory, while the Moving Average Convergence Divergence (MACD) suggests selling pressure may be easing; no reversal is confirmed yet.
The important level to watch is $0.140. A close below $0.1451 puts the structural low at $0.1382 directly in play. To the upside, $0.1726 to $0.1737 is the first meaningful resistance zone, followed by $0.1904 and $0.1957.
The SecondFi breach could not have come at a worse time for ADA. Sentiment was already fragile before the hack, and right now the charts and the headlines are pulling in the same direction. Whether the $0.140 level holds may depend as much on how SecondFi handles the next two weeks as on anything the market does on its own.
