The Midnight Foundation has temporarily stopped redemptions in its Glacier Drop token program after a security breach at EMURGO’s SecondFi platform. Midnight confirmed its own systems were not affected, but paused redemptions as a precaution since some Glacier Drop users have wallets linked to SecondFi. The foundation says redemptions will start again once the security situation is fully reviewed and extra safeguards are set up.
Midnight says the breach does not affect its blockchain, products, or services. Still, because some Glacier Drop users rely on SecondFi wallets, the foundation decided to pause all redemptions to reduce any possible risk. This decision also affects users who were not directly impacted.
The security issue dates back about a week, when SecondFi, formerly known as Yoroi Wallet—reported a sophisticated attack that resulted in the theft of more than 16 million ADA from 374 wallet addresses. An internal investigation later traced the exploit to an address-level vulnerability involving a deterministic nonce derivation flaw in the wallet’s software signer.
According to the company, attackers were able to reconstruct private keys using publicly available blockchain data after enough information leaked during transaction signing.
SecondFi has told affected users not to move funds to other platforms or import their recovery phrases into different Cardano wallets until the recovery process is finished. Meanwhile, Midnight says pausing Glacier Drop redemptions is the safest way to protect users while the investigation continues.
The Glacier Drop token distribution happens in phases, with tokens becoming redeemable in four quarterly instalments. The program is now in its third redemption period, which started on June 8 and runs until September 5. The final redemption window will open in September.
For now, Midnight has not given a date for when redemptions will start again. The foundation says the pause will stay in place until the SecondFi issue is fully resolved and it is sure users can safely claim their tokens.
🚨 Glacier Drop Redemptions Temporarily Suspended
Following reports of a security incident affecting a subset of Cardano wallets associated with @secondfiapp, we have made the decision to temporarily suspend Glacier Drop redemptions as a precautionary measure to help protect our…
— Midnight Foundation (@midnightfdn) June 28, 2026
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