Bybit, a popular cryptocurrency exchange, recently conducted a forensic review of a $1.5 billion hack that took place last week. The review revealed that the exchange’s systems were not breached, and the issue was traced back to compromised Safe wallet infrastructure.
According to Bybit’s findings, the hack occurred due to the credentials of a Safe developer being compromised. This allowed the Lazarus hacking group to gain unauthorized access to the Safe wallet and deceive Bybit staff into signing a malicious transaction. However, sources familiar with the matter mentioned that the hack could have been prevented if Bybit had not blindly signed the transaction, a process where a smart contract transaction is approved without full knowledge of its contents.
Safe, the company behind the compromised wallet infrastructure, issued a statement clarifying that the attack was conducted by compromising a Safe Wallet developer’s machine, which affected an account operated by Bybit. They emphasized that the Safe smart contracts were not vulnerable, and external security researchers did not find any issues with their code.
This incident has drawn parallels to a similar situation involving WazirX and Liminal Custody, where both parties blamed each other following a $230 million exploit last July. The back and forth between Bybit and Safe underscores the importance of robust security measures in the cryptocurrency industry to prevent such incidents from occurring in the future.
As the cryptocurrency market continues to evolve, exchanges and wallet providers must remain vigilant and proactive in safeguarding user funds against potential threats. By conducting thorough security reviews and implementing best practices, companies can enhance the trust and confidence of their users in the security of their platforms.