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A flaw in a wallet's address generation system drained roughly 16 million ADA, about $2.4 million, and Cardano founding entity EMURGO has since stepped down from its Pentad governance seat.
The departure puts $ADA watchers on the Pentad's composition. A formal statement on a replacement process is the next confirmable item.
The exploit: address generation as the attack surface The vulnerability sat at the wallet's address generation layer. A flaw in that process can allow an attacker to reproduce or predict the addresses a wallet generates.
Once that pattern is identified, the funds tied to those addresses are exposed. The drain came to roughly 16 million ADA, approximately $2.4 million.
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