Cardano founder Charles Hoskinson has ruled out compensating users affected by the SecondFi wallet hack, saying he bears no responsibility for the platform's losses. His comments, posted on X on October 19, 2026, came in response to a community proposal that tied reimbursement for lost NIGHT airdrops to deposits in a Cardano decentralized finance liquidity vault. The exchange has renewed scrutiny of the wallet provider's response to the June security breach, in which attackers stole 16.1 million ADA worth approximately $2.6 million at the time.

Hoskinson Rejects Bailout Proposal Tied to DeFi Vault

The request originated with an X user who 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 Cardano users affected by the hack. As structured, idea tied any potential relief to growth in Strike Finance's vault rather than to a dedicated compensation fund.

The suggestion arrived shortly after Strike Finance's recent stablecoin yield announcement. That announcement concerned returns offered through RealFi's integration with the trading platform and did not include any agreement to finance compensation for wallet losses.

Hoskinson rejected the request outright. "I have nothing to do with SecondFi. It's not my responsibility to bail you guys out," he wrote. He did not put forward any personal reimbursement plan, leaving affected users to pursue claims through SecondFi's recovery program. The rebuff also draws a sharp line between Cardano as a protocol and the third-party wallets built on it — a boundary that determines where users of compromised applications must look for recourse.

"I have nothing to do with SecondFi. It's not my responsibility to bail you guys out."

— Charles Hoskinson (@IOHK_Charles), October 19, 2026, via X

June Breach Exposed Wallet Signing Flaw

Between June 21 and 23, attackers stole approximately 16.1 million ADA — valued at roughly $2.6 million at the time — from 374 SecondFi wallets. Investigators traced the incident to a flaw in the wallet's transaction signing process rather than to Cardano's blockchain itself.

SecondFi secured about 129 million ADA through emergency transfers and arranged for the funds to be placed in outside custody. Investigators identified possible links to North Korea's Lazarus Group, though responsibility was never confirmed. Recent data on cryptocurrency hacks documents broader thefts across the industry.

The wallet provider subsequently announced it would cease operations and advised users to move remaining balances into newly created wallets. That migration process is separate from the claims process for assets affected during the security breach.

Recovery Tool Limits Eligible Claims

SecondFi launched its recovery tool on October 7. Since then, the company has reported recovery transfers exceeding 100 million ADA and 22 million NIGHT tokens, and the team plans to rely on automated smart contracts to handle outstanding claims.

Eligibility is calculated using incident records and wallet snapshots. NIGHT airdrops remain linked to their original wallets, while external DeFi assets are subject to 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 to receive recovered funds. It also warns users to watch out for unsolicited recovery offers and fake support messages. The program covers only eligible assets and does not guarantee full reimbursement. With Hoskinson declining to intervene, the recovery tool remains the main channel for victims to reclaim assets, and SecondFi's reported transfer totals are the clearest public measure of the program's progress.

Source: CoinCentral