EMURGO, one of Cardano's three founding organizations and the developer of the SecondFi wallet, said on Wednesday that it is stepping down from its role in the blockchain's Pentad governance group to focus its attention on recovering user funds following last month's $2.4 million exploit.
"Our immediate priority is the SecondFi recovery process, and we are concentrating our resources where they are needed most," the company said in a post on X. "We believe this is the right decision for our users and for the ecosystem, and it reflects the standard of accountability we hold ourselves to as a founding entity of Cardano."
Pentad, a coalition that was officially formed earlier this year, includes Input Output Global, the Cardano Foundation, Intersect, the Midnight Foundation, and EMURGO. A January development report introducing the group says it will act as a "coordinated, treasury-supported process focused on network-wide infrastructure needs."
The announcement comes roughly two weeks after EMURGO disclosed an exploit affecting SecondFi, the Yoroi-rebranded self-custody wallet that the group launched earlier this year. The exploit, which leveraged a flaw in the wallet's address generation system, drained roughly 16 million ADA worth about $2.4 million at the time, from 374 wallets.
