Cardano ' s recent decline has deepened and, in addition to the weakness of the overall encrypted market, an ecological wallet security incident has further undermined market sentiment. Some 16 million ADAs were reported to have been stolen from the affected wallets, amounting to approximately $2.4 million of their medium calibre, a cumulative decline of almost 15 per cent this month following the incident.
More than 370 addresses affected
The incident was related to the SecondFi wallet infrastructure. Early information indicates that a loophole may appear in the wallet generation chain, leading to private key exposure, and that the attackers were then able to access multiple wallet addresses. The report mentions that more than 370 addresses were affected.
Security agencies initially warned that potential risk exposures could be higher than 129 million ADAs and waved over other assets. This statement quickly caused panic in the Cardano community and users were reminded to suspend interaction with their wallets.
Some high-risk assets have been transferred for protection
As events spread, ecological participants began to deal with risk assets. Follow-up updates indicate that some 129 million ADAs initially considered at risk have been transferred to safer locations and may be returned to affected users. This progress eased the market ' s concerns about the worst-case scenario, but did not fully repair the emotional shock.
The SecondFi development team reportedly deployed security patches and temporarily suspended services during the investigation. The team also indicated that it planned to compensate affected users and restore related services upon completion of security upgrades.
Hoskinson's response chain itself is intact.
Charles Hoskinson, founder of Cardano, also responded. He states that the wallet and related infrastructure were affected and that the Cardano block chain itself was not broken. However, he also acknowledged that the actual loss of the user had already occurred, which would still put pressure on the holder ' s confidence.
In terms of market performance, at the time of the incident, ADA was in a state of continuous fall, and the security accident further magnified the discharge. In the original version, ADA fell to the vicinity of about US$ 0.15, almost half of its height at the end of 2025.
In the short term, market concerns remain focused on the smooth return of affected assets and on the gradual restoration of the cardano ecological confidence following the restoration of wallet services. If the sale continues, ADA may still be vulnerable; if the safe disposal continues well, market sentiment is expected to stabilize.