# Charles Hoskinson Says He Will Not Cover SecondFi Wallet Losses By Simon Yoon Canonical URL: https://www.tokenpost.com/news/technology/35839 Published: 2026-10-20T18:02:34.000Z Updated: 2026-10-20T18:02:34.000Z Section: Technology > A June breach drained approximately 16.1 million Cardano (ADA) from 374 wallets. SecondFi’s recovery process covers only eligible assets. Cardano founder Charles Hoskinson said he would not compensate users affected by the SecondFi wallet breach, leaving claims to a limited recovery process as the wallet provider winds down its service. Hoskinson said he had no connection to SecondFi and rejected the idea that covering its users’ losses was his responsibility. The breach occurred June 21-23. Approximately 16.1 million Cardano (ADA) was stolen from 374 wallets, with the loss estimated at about $2.6 million. The investigation identified a flaw in the software that generated transaction signatures. Under certain conditions, public transaction data could be used to derive private key material. SecondFi opened its recovery tool Oct. 7. It checks affected addresses against incident records and wallet snapshots before users request eligible assets be sent to a new wallet. The amount shown during a request is an estimate; the final recovery may be smaller than the original loss. The [recovery process]() is separate from the Wallet Migration Tool, which moves assets still held in an old wallet. Neither SecondFi’s Asset Recovery Tool nor its Wallet Migration Tool can process Midnight (NIGHT) claims. Future NIGHT redemptions remain tied to the original address, and tokens sent to a compromised wallet could be drained. ## Links in this article - [recovery process](https://www.tokenpost.com/news/technology/35502)