TLDR
- Charles Hoskinson rejects requests to compensate SecondFi hack victims, saying he bears no responsibility for the wallet’s losses.
- The June security breach resulted in the theft of 16.1 million ADA, worth approximately $2.6 million.
- SecondFi reports recovery transfers exceeding 100 million ADA and 22 million NIGHT tokens since October 7.
- The recovery program only covers eligible assets and does not guarantee full reimbursement.
Cardano founder Charles Hoskinson has ruled out compensating users affected by the SecondFi hack. The comments renewed scrutiny of the wallet provider’s response. His response followed a proposal connecting reimbursement for lost NIGHT airdrops to deposits in a Cardano decentralized finance liquidity vault.
Hoskinson Rejects SecondFi Bailout Proposal
An X user urged Hoskinson to help victims recover their airdrops if RealFi’s sUSDrf stablecoin reached $1 million in Strike Finance’s vault. The user framed the proposal as a way to restore confidence among affected Cardano users.
I have nothing to do with SecondFi. It’s not my responsibility to bail you guys out.
— Charles Hoskinson (@IOHK_Charles) October 19, 2026
The suggestion followed Strike Finance’s recent stablecoin yield announcement. That announcement concerned returns offered through RealFi’s integration with the trading platform. It did not include an agreement to finance compensation for wallet losses.
Hoskinson rejected the request. “I have nothing to do with SecondFi. It’s not my responsibility to bail you guys out,” he wrote. He offered no personal reimbursement plan, leaving claims with the wallet provider’s recovery program.
SecondFi Hack Exposed Wallet Signing Flaw
Between June 21 and 23, attackers stole approximately 16.1 million ADA from 374 SecondFi wallets. The tokens carried an estimated $2.6 million in value at the time. Investigators identified a flaw in transaction signing rather than Cardano’s blockchain.
SecondFi secured about 129 million ADA through emergency transfers and arranged outside custody. Investigators found possible links to North Korea’s Lazarus Group but did not confirm responsibility. Recent data on cryptocurrency hacks documents broader thefts across the industry.
The wallet provider later announced it would cease operations. It advised users to move remaining balances into newly created wallets. That migration process differs from claims for assets affected during the security breach.
SecondFi Recovery Tool Limits Eligible Claims
SecondFi launched its recovery tool on October 7. It reported transfers of more than 100 million ADA and 22 million NIGHT tokens through recovery requests. The team plans to use automated smart contracts to handle outstanding claims.
SecondFi calculates eligibility using incident records and wallet snapshots. NIGHT airdrops remain linked to original wallets, while external DeFi assets follow separate protocol rules. Recent reporting on wallet security describes further risks for cryptocurrency holders.
The company directs claimants to its official recovery site and requires a new Cardano wallet address. It warns users against unsolicited recovery offers and fake support messages.
