SecondFi (Yoroi) Is Shutting Down — Official EMURGO Update - Learn Cardano Podcast

Episode Transcript
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Speaker 1 (00:00):
We have another major update from Second five around the
hack and also the recovery of all the funds for
users that have been affected. So let's get right into
this one. Here. This is the official statement from a
Murgo at the moment around the Second five incident. Now,
I'll go through this summary really quickly for you guys
to get to the point. They've engaged multiple different security

(00:22):
firms to conduct a review, and they have patched the
current vulnerability that they have identified, and there may be more,
so they're not releasing all the details of it just
as yet because there may be more that I found,
and they do know that there are malicious actors at
the moment trying to get more funds out of this

(00:43):
particular exploit, so please stay safe guys. Now at the moment,
they are focusing on assets safeguarding and fund recovery. That
is the main goal at the moment, and they're working
on a wallet status verification process and building that mechanism
that allows users to determine whether their wallet was impacted.

(01:05):
So they did release one last week, but this is
a slightly better one, I think, a better user experience
so that users can actually work out if their wallets
have been compromised or not. Lastly, is the migration pathway
a clear path safe routes to migrate to hardware, wallets, solutions,
or alternative platforms using the quarantine methods. Now, this is

(01:28):
also really important here. They will be ceasing operations from
now on, so although we believe unaffected users remain safe,
Second five will not resume normal operations. This is essentially
the closure of Second five literally one week into its release,
and it's unfortunate now that the team will no longer

(01:49):
be running the Second five project and continuing that particular
wallet's operation. This I believe also goes for EUROI, and
it's a successor Second five, So it's really unfortunate because
euroi has been around for a very long time. It's
not exactly clear if euroi be restored or not, but

(02:12):
it really doesn't sound like it will be from the
sounds of it, but there may be a re ignition
of it by community members. Because the euroi wallet is
open source, it does work very well for what it is,
but it may need some upgrading to keep it up
to date with the current evolution and growth of the

(02:34):
Candona ecosystem. But overall, this is a very sad news
story from the Second five team to hear that the
Second five app will be ceasing operations. It's probably the
best decision here and I think the main focus on
on chain recovery is the main thing for the team.

(02:55):
So what comes next This week they will launch that
quarantine site that makes significantly easier for users to check
the status of their wallet and take necessary actions to migrate.
And it's probably really good time guys at the moment
to look into hardware wallets. If you don't have a
hardware wallet yet, I highly recommend the Keystone wallet. Brilliant

(03:17):
hardware wallet. It's air gapped, uses QR codes to scan
the information from your computer, It signs on your wallet
and then you use a QR code for your computer
to read and then submit that transaction on chain. So
it's a brilliant hardware device or open source and built
very very well. The other aspect in other wallet I
should say is the Ledger. Ledger has been around for

(03:39):
a really long time, very well supported in the Cadina
ecosystem and it is quite an easy wallet to use too.
There are some controversy around their recovery process and the
embedded firmware that sends the seed phrases software, but I
think the simple model doesn't have that built into it.

(04:00):
Look at the simple one. It's usually the cheapest as well,
but highly recommend if you don't have a hardware wallet,
looking to getting one. Now, protect and secure your assets,
take self custody of them. Okay, links down below. I've
got affiliate links to Keystone and the Ledger Nano as well,
So if you're interested in supporting the channel, you can

(04:21):
buy through my affiliate links and you can buy it
that way. I get a little bit of a cut
of the commission and you get a brilliant hardware wallet.
But that's okay. If you can buy external, you don't
need to buy, but make sure don't. You don't need
to buy it through my affiliate links, but make sure
you do buy it through the official channels itself. Okay,

(04:42):
back to the story here, So they'll be working through
that recovery process and you'll see everything come on chain
hopefully later this week. Now, in terms of transparency here,
we will publish on our We will publish on account
of who and what and why once the incident reports
and code reviews are finalized. It's a complex situation. The

(05:05):
evidence suggests that a number of external threat actors may
be involved. We understand the community is seeking answers, and
we share that urgency. At this moment, however, our focus
is where it must be, safeguarding users, providing unaffected users
a clear pathway to hardware, wallets or alternative platforms, and
returning assets to those who were affected. So there are

(05:27):
two main users that were affected by this entire process.
The first one were the users that were hacked by
the hacker themselves find that found the exploit and managed
to move I think was sixteen million worth of Aider
out of the user's wallets. And then also the white
hat hacker that moved one hundred and twenty nine million

(05:50):
worth of Aider and assets out of users wallets. So
we'll see the return of all of that in due course.
So the white hat hacker is holding on to the assets,
they'll be returning that, but then also the extra funds
that a murger themselves are forking out to return that
first initial sixteen million as well. What I would love

(06:13):
to see and understand is where and what the hacker
is doing with these funds. We managed to trace it,
We saw them convert a lot of the funds to USDCX.
But what's happening from there? I haven't tracked and seen
what else has happened there, and I would love to
work out and find out who this person is or
who they are and what is happening with the funds themselves.

(06:34):
But very unfortunate to see second five EUROI or come
to this point, now, what are people saying a lot
of spam emails going out at the moment. If you
received an email about second five, it is highly likely
that your email was leaked. At some point in time,
someone has managed to grab or is scraping email lists

(06:55):
that are related to Kadana users and are sending out
these these fake phishing scam emails. So please be careful, guys.
Ignore all of those emails, report them as a spam,
and hopefully other people don't get caught out by them either.
The official communication channel is through the X account on

(07:16):
Amergo and second fire accounts only, so make sure you're
following the correct accounts here so that you get the
latest up to date news. I'll be publishing as much
as I can on X, on YouTube, on Reddit, and
on Facebook, and so if you're following any of those
accounts on CONDONA relayed and stuff. You should see me

(07:36):
up here and you should see all this information come out.
So as soon as I find out when the brand
new tool is up and running for verifying if you're
being hacked or compromised and the migration process is all
up as well, I'll put all of them in a
video and pack it out and then send it out
to all the relevant channels as well. So guys, stay

(07:57):
safe out there. Most people that have been doing nothing
or are already on hardware wallets are completely unaffected. So
thankfully a lot of people are still safe and haven't
interacted with Second five, so don't need to worry about
this too much. But still there's a lot of funds
out there that have been compromised and hopefully we do
see the funds returned very soon. Anyway, Guys, if you

(08:20):
found this video update useful, make sure you hit that
thumbs up like subscribe notification bell YouTube memberships down below.
I've got to buy me your coffee links there as well.
That's a great way to support the channel and support
the content and the work that I do in the
Cadano ecosystem. And if you can't do any of that.
Just make sure you hit that thumbs up on the
way out like always. Guys, stay positive, I'll see you

(08:40):
in the next video.

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SecondFi (Yoroi) Is Shutting Down — Official EMURGO Update

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