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The fallout from the recent $1.5 billion Bybit hack continues to unfold as Safe Wallet confirms that hackers exploited its infrastructure. The attack reportedly stemmed from a compromised developer machine and involved a disguised malicious transaction that enabled unauthorized access.
Safe Wallet Targeted in $1.5 Billion Bybit Hack
In an official statement, Safe Wallet clarified that its smart contracts remained secure. “The forensic review of external security researchers did NOT indicate any vulnerabilities in the Safe smart contracts or source code of the frontend and services,” the company stated.
To address the breach, Safe Wallet has reinstated its services on the Ethereum (ETH) mainnet through a phased rollout. The team claims to have completely reconfigured its infrastructure while rotating all credentials to prevent future exploits. Despite these reassurances, users have been advised to exercise caution when signing transactions as additional security measures are implemented.
The company has also announced an industry-wide initiative to improve transaction verifiability and pledged to release a full post-mortem report upon the completion of its investigation.
Industry Backlash Over Safe Wallet’s Response
Despite Safe Wallet’s clarifications, the crypto community remains skeptical. Critics, including former Binance CEO Changpeng Zhao (CZ), have voiced concerns over the company’s vague explanations.
“I usually try not to criticize other industry players, but I still do it once in a while. This update from Safe is not that great. It uses vague language to brush over the issues. I have more questions than answers after reading it,” CZ remarked.
CZ questioned the security of the compromised developer machine, the deployment process of Bybit’s production environment, and how the attackers bypassed Ledger verification steps. Other analysts highlighted that while the smart contract layer remained intact, hackers exploited the front end, manipulating transactions in what is described as a classic supply chain attack.
FBI Confirms Lazarus Group’s Involvement
The U.S. Federal Bureau of Investigation (FBI) has confirmed that the North Korean Lazarus Group orchestrated the attack, stealing 40,000 ETH from Bybit’s cold wallet. The agency has identified Ethereum addresses tied to the group and urged crypto exchanges, blockchain analytics firms, and DeFi services to block transactions linked to these addresses to prevent further laundering efforts.
As scrutiny over Safe Wallet’s security practices intensifies, the incident underscores the growing need for heightened security measures across the crypto industry.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
