Cardano falls as EMURGO exits governance group
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- Cardano's ADA fell about 5% after founding entity EMURGO announced it was leaving the Pentad governance group.
- EMURGO said it is redirecting resources to help users affected by the US$2.4 million SecondFi exploit.
- The company said recovery efforts remain its immediate priority while governance responsibilities are expected to be redistributed.
Cardano (CRYPTO:ADA) fell about 5% after founding entity EMURGO announced it was leaving the Pentad governance group to focus on recovery efforts following the US$2.4 million SecondFi exploit.
EMURGO said the decision was driven by its need to prioritise support for users affected by the hack, which reportedly impacted hundreds of cryptocurrency wallets, raising questions about how governance responsibilities will be shared across the Cardano ecosystem.
“Our intention is that next week, the secure wallet export will be deployed to help affected users safely move assets to a new wallet,” EMURGO said.
EMURGO said quarantine mode has already been activated to help users identify affected wallet addresses and submit recovery requests, while a secure wallet export feature and a recovery tool remain under development.
Following the announcement, ADA traded near US$0.1665 with a market capitalisation of about US$6.2 billion and trading volume above US$340 million after falling roughly 5% over 24 hours.
EMURGO is one of Cardano's three founding organisations alongside Input Output and the Cardano Foundation, with the Pentad governance group also including Intersect and the Midnight Foundation.
The departure comes as Cardano continues expanding its decentralised governance model, with EMURGO stating its immediate priority is restoring services and assisting users affected by the SecondFi security incident.
At the time of reporting, Cardano price was $0.167.
