In February 2025, hackers stole over $1.5 billion worth of Ether (ETH) from Bybit, marking one of the largest crypto thefts in history. The attack, allegedly carried out by North Korea’s Lazarus Group, exploited a compromised SafeWallet developer machine, injecting malicious JavaScript into Bybit’s transaction process.
The breach exposed a critical vulnerability in the crypto industry’s infrastructure, particularly in the systems supporting self-custodial wallets like SafeWallet. Though Safe’s smart contracts remained secure, the incident demonstrated how social engineering and hardware compromise can bypass even the most advanced defenses.
Following the attack, SafeWallet CEO Rahul Rumalla called it a “reckoning moment” for the company. Speaking on Cointelegraph’s Chain Reaction show, he revealed that Safe had completely rearchitected its security framework, dividing it into layers: transaction-level, signer-device, infrastructure, and compliance security.
“In self-custody, security is a shared responsibility,” Rumalla said, emphasizing that many users still engage in blind signing — approving transactions without verifying their contents.
The restructuring focused on education, standards, and awareness, aiming to address fragmented security practices in the crypto ecosystem. Despite the controversy, SafeWallet’s institutional clients remained supportive, understanding that the protocol itself wasn’t breached.
Lazarus Group continues to pose a global threat, with analysts predicting over $2 billion in stolen crypto in 2025. Rumalla warned that hackers now use social infiltration tactics — joining Telegram groups, DAOs, and even applying for jobs — to compromise targets.
SafeWallet’s new security architecture reflects a shift in mindset: balancing usability with robust self-custody protections. Rumalla concluded that the future of crypto security depends on continuous adaptation — ensuring users can retain control of their assets without sacrificing safety.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.