The recent $1.4 billion hack of Bybit has sparked controversy, with criticism from former Binance CEO Changpeng Zhao. Safe's post-mortem report has become a focal point for discussions on cryptocurrency data protection and security.
Safe’s Report: Analyzing the Incident
Safe's forensic report revealed that the attack was executed via a compromised developer machine. Hackers inserted malicious code into SafeWallet's Amazon Web Services infrastructure, deceiving Bybit into approving a fraudulent transaction. The report indicated no vulnerabilities in Safe's smart contracts or frontend services.
CZ’s Criticism: Report Gaps
Changpeng Zhao criticized the report for its lack of specificity and unanswered questions. He raised concerns about how the developer machine was compromised and how the verification steps were bypassed. He also questioned why Bybit's wallet specifically was targeted and emphasized the need for greater transparency and stronger security protocols.
Response Actions and Safety Measures
Safe co-founder Martin Köppelmann attempted to clarify the situation by pointing out interface changes and proposing enhanced transaction verification. Leading blockchain security firms, Sygnia and Verichains, were brought in for an independent investigation, confirming the JavaScript injection. Security improvements were recommended.
The incident highlights the urgent need for improved security measures in the cryptocurrency industry, especially for self-custody multi-signature wallets. While Bybit quickly replenished lost funds, the event underscores the importance of learning from past failures and fortifying security protocols.
