<\/p>\n
This is a segment from the Lightspeed newsletter. To read full editions, <\/em>subscribe<\/em><\/a>.<\/em><\/p>\n Yesterday, Bybit CEO Ben Zhou posted on X that the platform\u2019s $1.4 billion hack had been caused by \u201cmalicious code originating from Safe{Wallet}\u2019s infrastructure.\u201d Solana CEOs had many words, including \u201cnightmare<\/a> season,\u201d \u201choly<\/a> hell,\u201d and \u201choly<\/a> shit.\u201d<\/p>\n Preliminary reports indicate Safe\u2019s frontend was exploited to trick Bybit into signing a malicious transaction, and Safe\u2019s actual smart contracts appeared to perform as intended. Still, the foul language likely stemmed from the fact that wallets being exploitable gives hackers access to a whole lot of assets \u2014 Safe\u2019s smart accounts secure over $100 billion<\/a> in digital assets.\u00a0<\/p>\n In other words, hackers could go further than Bybit.<\/p>\n Squads, a multisig wallet used by a number of prominent Solana teams including Helium, Kamino, Pyth, Helius, Drift, Jupiter and Ellipsis, is \u201cconducting a comprehensive review of our infrastructure to mitigate the possibility of such an attack,\u201d CEO Stepan Simkin told me.\u00a0<\/p>\n Simkin emphasized that \u201chigh value accounts\u201d need purpose-built wallet solutions because sophisticated hackers can \u201cpotentially compromise any frontend.\u201d<\/p>\n The Bybit hackers \u2014 whom the FBI has now accused<\/a> of being linked to North Korea \u2014 injected malicious code into Safe\u2019s JavaScript files to alter Bybit\u2019s multisig transactions and send the funds to the attacker\u2019s address, according to a report<\/a> from blockchain security firm Slowmist. While the crypto industry puts a lot of effort into auditing smart contracts, it focuses less than it should on \u201cconventional infrastructure\u201d \u2014 like leaked Amazon Web Services credentials, which was the culprit in this case, Simkin said.\u00a0<\/p>\n \u201cJavaScript side hacks are the easiest to execute due to lack of audits,\u201d Cube Exchange CEO Bartosz Lipinski said. \u201cSolana is not immune to that.\u201d<\/p>\n Lipinski said Cube chose multi-party computation over multi-signature for wallet security in part because it prevents \u201cblind signing \u201c \u2014 which Bybit apparently<\/a> did.<\/p>\n Simkin said Squads is working on a \u201cdecentralized frontend\u201d that would allow users to interact with the protocol without having to rely much on its infrastructure.<\/p>\n Get the news in your inbox. Explore Blockworks newsletters:<\/strong><\/p>\n This is a segment from the Lightspeed newsletter. To read full editions, subscribe. Yesterday, Bybit CEO Ben Zhou posted on X that the platform\u2019s $1.4 billion hack had been caused by \u201cmalicious code originating from Safe{Wallet}\u2019s infrastructure.\u201d Solana CEOs had many words, including \u201cnightmare season,\u201d \u201choly hell,\u201d and \u201choly shit.\u201d Preliminary reports indicate Safe\u2019s frontend […]<\/p>\n","protected":false},"author":2,"featured_media":376784,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-376780","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/376780","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=376780"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/376780\/revisions"}],"predecessor-version":[{"id":376786,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/376780\/revisions\/376786"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/376784"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=376780"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=376780"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=376780"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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