Midnight Cannot Reassign NIGHT Claims After SecondFi Incident

Glacier Drop redemptions remain open, but users whose claim-linked keys were compromised have no confirmed safe way to redeem their allocations.

By SongMarketCap

Updated:

Cardano News - Midnight Cannot Reassign NIGHT Claims After SecondFi Incident

Midnight Foundation said on September 24 that it has no administrative means to move affected Glacier Drop claims to a new wallet. The statement addresses a problem left unresolved by the reopening of its redemption portal: some claim holders may still need to use private keys compromised in the SecondFi incident to collect tokens destined for Cardano addresses.

Glacier Drop Claims Cannot Be Overridden

The Foundation says only a claim holder using the associated private key can redeem an allocation. The system has no master key, backdoor or administrative control that would allow the Foundation to take over a claim or change its destination.

For users affected by SecondFi, that creates a conflict. The key needed to access a claim may also be known to an attacker. Redeeming tokens with the associated wallet could therefore expose them to an unauthorized transfer.

Midnight temporarily suspended redemptions in late June while assessing the incident. It reopened the portal on July 9 after concluding that its redemption infrastructure was safe. The new statement concerns compromised user keys rather than a new problem with that infrastructure.

Migrating a SecondFi Wallet Does Not Redirect NIGHT

During the original Glacier Drop claim, participants selected a Cardano address to receive their tokens. Allocations were locked and scheduled to become available in portions. Each redeemed portion is sent to the address registered at that time.

SecondFi has advised users to migrate remaining assets to new wallets following its June security incident. Its guidance says that migration does not change the address designated for future NIGHT redemptions. Users with an unaffected old wallet can move tokens after they arrive, but SecondFi warns that tokens sent to an affected wallet may be taken and might not be recoverable.

SecondFi describes a separate recovery process for assets affected by the incident. It has not presented that process as a way to change a Glacier Drop destination address.

SecondFi Remains the Contact for Affected Claim Holders

Midnight Foundation has directed affected users to SecondFi’s official guidance and support team. It says it will continue monitoring the situation, but announced no alternative redemption route in its September 24 statement.

Neither organization has disclosed how many claims are affected or how much $NIGHT is tied to them. SecondFi has also not confirmed that its separate asset recovery process can secure future token portions sent to a compromised address.