Hacker’s Identity Shrouded in Mystery as $18.5 Million in ADA Moves from Vulnerable Wallets
Cardano – The identity of the “white hat” hacker who moved approximately $18.5 million worth of ADA from vulnerable SecondFi wallets remains unknown to Emurgo, the firm that developed the platform, according to Charles Hoskinson.
Hoskinson, speaking on June 25 during his X Spaces session titled ‘The Bingo Hall,’ relayed information from a contributor named ‘Jer.’ Jer had attended a meeting between the Cardano governance body Intersect and SecondFi’s 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,” Hoskinson stated.
This distinction is significant, leaving open the possibility that Emurgo may be unaware of the hacker’s identity or is strategically managing its public statements.
The price of ADA has seen a notable decline, dropping 21% over the past two weeks and currently trading near $0.145. These levels represent multi-year lows, approximately 95% below the asset’s all-time high.
While the recent crypto incident did not compromise the Cardano protocol itself – with both Intersect and Hoskinson emphasizing that the vulnerability was confined to the wallet application layer – the reputational impact on the ecosystem is tangible, and the market appears to be factoring this into ADA’s valuation.
Recovery Efforts Underway for Affected Users
The team managing the recovery process is reportedly on track with an estimated two-week timeline. Significant progress is being made as engineering teams explore multiple technical avenues concurrently to identify the most secure method for recovering funds for affected users.
SecondFi, a prominent Cardano wallet provider formerly known as Yoroi Wallet, experienced a critical flaw in its key-generation software. This led to three external attackers draining an estimated 16 million ADA, valued at approximately $2.4 million, from 374 addresses across four separate incidents.
The larger movement of 129 million ADA, which is at the heart of the identity dispute, was characterized by SecondFi as an emergency rescue operation. These funds were reportedly transferred to an “independent, qualified third-party custodian” for the benefit of the affected addresses. Cybersecurity firm SlowMist has estimated the total exposure could surpass $20 million.
SecondFi conducted a final balance snapshot on June 26 and has stated its intention to return lost user assets within two weeks. However, the company has cautioned that this timeline is not guaranteed and has advised users against moving funds to new wallets in the interim, warning that “independent actions taken outside of official guidance create additional risks.”
Technical Analysis of ADA Price Action
ADA is currently trading near $0.145, marking a 21% decrease over the last two weeks. The cryptocurrency is trading well below its 50-day Exponential Moving Average (EMA) of $0.1904, its 100-day EMA of $0.2248, and its 200-day EMA of $0.3006.
The Relative Strength Index (RSI) is hovering around 29, approaching oversold territory. The Moving Average Convergence Divergence (MACD) has turned marginally positive, suggesting a fading bearish momentum rather than a confirmed reversal.
Key support is identified at the psychological level of $0.140, with a structural low near $0.1382. A daily close below $0.1451 could expose this zone directly.
On the upside, initial resistance is observed in the $0.1726–$0.1737 range, which encompasses a broken descending trendline and the 23.6% Fibonacci level. Further resistance is expected at the 50-day EMA ($0.1904) and the 38.2% Fibonacci retracement level ($0.1957).
The CoinGlass long-to-short ratio stands at 0.72, the lowest it has been in over a month. Funding rates are negative at -0.0055%, indicating that short positions are currently paying long positions, a mild contrarian signal.
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