In a fresh update, one of Cardano’s founding entities, EMURGO, has announced its exit from the Pentad leadership coalition. The move comes as the company shifts its full attention to recovering funds lost in the recent SecondFi exploit and supporting affected users.
EMURGO Leaves Pentad to Prioritize SecondFi Recovery
Cardano’s founding entity, EMURGO, announced in a recent X post that it is stepping down from the Pentad. The Pentad is a leadership coalition created to strengthen Cardano’s infrastructure. Its members include the Cardano Foundation, IOG, EMURGO, and the Midnight Foundation. EMURGO said it decided to leave the coalition to dedicate all its resources to the ongoing SecondFi recovery process. The firm believes this is the best way to support affected users and the wider Cardano ecosystem.
Meanwhile, the announcement follows EMURGO’s June 25, 2026, disclosure that SecondFi, Cardano’s largest wallet provider, was the target of a coordinated multi-actor exploit. A total of 374 wallets were affected across three separate attack events, leading to the loss of about 16 million ADA, worth roughly $2.4 million at the time of the announcement.
Further, EMURGO said that concentrating all its efforts on recovering users’ assets reflects the highest standards of accountability expected of one of Cardano’s founding entities. Notably, the team thanked the other coalition members for their shared commitment to Cardano and expressed appreciation for their work together to strengthen the network.
Recovery Process Enters the Next Phase
Meanwhile, EMURGO said the SecondFi recovery process is now moving into its next stage. According to the update, quarantine mode will be enabled this week. The feature will allow users to check whether their wallet address appears in the preliminary incident data. If a user finds their address there, they can submit a support ticket for assistance.
In addition, the team plans to deploy a secure wallet export feature next week. The tool will help affected users safely move their assets to a new wallet without exposing sensitive information. EMURGO also reported steady progress on its asset recovery solution. Interestingly, developers are building a recovery tool that users will access through a dedicated online portal. The company said the system will keep users in control of their assets while protecting their personal information throughout the recovery process.
Although EMURGO did not provide an exact launch date for the recovery tool, it said development is progressing steadily. The company promised to keep the community informed as it progresses. It added that leaving the Pentad will allow the team to devote more time and resources to restoring users’ assets and rebuilding confidence in SecondFi.
Meanwhile, EMURGO Vice President of Global Marketing Nathaniel Acton said in a recent X post that SecondFi will not resume normal operations even after completing its security audit. According to Acton, the platform will only restart once the recovery process is complete and every affected user has recovered their funds. He stressed that the team remains focused on making all affected users whole before bringing the wallet back online.
The CoinRemark Team
