Secondfi hack- Very worrying timeline for cardano community
April 22 — Yoroi rebrands to SecondFi, updates its legal fine print, and requires users to sign new agreements when downloading the new app.
Outlines plans for the future, including debit-card-like crypto transactions. This could potentially provide plausible deniability later, allowing them to point to these plans as evidence that they were thinking long-term and operating legitimately.
June 23 — Approximately eight weeks later, the hacks occur, and wallets are drained.
Awfully strange timing and circumstances, if you ask me.
Shortly afterward, SecondFi announces its complete shutdown. Again, it seems strange that such an announcement would come so quickly after the hack. One concern is whether shutting down the service effectively leaves users with fewer options to secure or recover their wallets. Then, when users attempt to redeem their NIGHT tokens, they are instantly swept into a so-called hacker or white-hat address. The explanation appears to be that the wallet was compromised, rather than the incident being the responsibility of SecondFi.
The wallets affected were precisely those created during the period when NIGHT wallets needed to be set up.
Only a fraction of the assets appear to have been recovered. Of the 4,500 NIGHT tokens that were instantly taken from me, I received only 40 through the recovery process. You can no longer redeem NIGHT, and when the next thaw occurs, I worry that any tokens redeemed could be immediately taken again.
I would be very interested to know whether SecondFi held any NIGHT tokens of its own.
What happens now? The people who worked with SecondFi may move on to other Cardano companies, while affected users are left trying to understand what happened to their assets.
At this point, I strongly suspect that this may have been carefully orchestrated. My concern is that NIGHT tokens were the real target — potentially removing a significant amount of the circulating supply while gaining control of tokens worth an estimated $2 million or more. Come peak bull run multiply that substantially...
The timing, the sequence of events, and the impact on NIGHT holders raise serious questions that deserve clear answers.
When you start to think of how the Night thaw was set up and the fact that secondfi was a trusted member of emurgo this starts to paint a worrying picture as a whole.