How the Safe Client Led to Bybit's $1.5 Billion Hack

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by Giorgi Kostiuk

2 years ago

The recent $1.5 billion hack on Bybit revealed important lessons for the crypto world. This article explores how the attackers used the Safe Client to compromise systems.

Preliminary Conclusions About Safe App Compromise

Official reports revealed that a benign JavaScript file in the Safe app was replaced with malicious code on February 19 at 15:29:25 UTC. The attack specifically targeted Bybit’s Ethereum multisig wallet. The compromise occurred via a Safe developer machine, with a leaked account or API key.

The attack was directed at Bybit but could have affected any exchange or entity.None

Safe Official Statement

In its statement, Safe revealed that the attack was conducted by the Lazarus Group and affected a Bybit machine account, though Safe smart contracts remained unaffected. Additional security measures have been implemented to eliminate the attack vector. External security checks did not reveal vulnerabilities in Safe smart contracts or frontend source code.

Lazarus is a state-sponsored North Korean hacker group known for sophisticated social engineering attacks.None

Official FBI Report

The FBI reports that stolen assets were converted into BTC and other cryptocurrencies, likely to be laundered and turned into fiat via numerous addresses on various blockchains. Recommendations included blocking transactions with addresses connected to activity known as TraderTraitor by the FBI.

The attack has revealed numerous vulnerabilities in secure applications within the crypto space. Users and companies must remain vigilant and cautious about their systems’ security.

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