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- Binance CEO CZ questions Safe{Wallet}’s security measures after Bybit’s cyberattack, calling for stricter security protocols.
- CZ demands transparency on how a compromised developer machine accessed Bybit’s account, raising concerns about security failures.
- Safe{Wallet} defends its security measures amid CZ’s criticism, but experts remain doubtful about the effectiveness of recent fixes.
Former Binance CEO Changpeng Zhao (CZ) has strongly criticized Safe{Wallet}’s security protocols following a cyberattack on Bybit that was linked to a compromised Safe{Wallet} developer machine. CZ raised multiple concerns about the security failures that allowed the breach, emphasizing the need for improved safeguards in the crypto industry.
Zhao asked how a developer could access an account with Bybit and explained that this issue could occur if no precautions were implemented. He also wanted to know how competitors such as Safe{Wallet} compromised its Ledger verification methods. As Zhao noted, the incident demonstrated significant issues concerning self-custody and multi-signature wallets’ security.
CZ’s Concerns Over Security Failures
CZ expressed doubts about the effectiveness of Safe{Wallet} ‘s security response, stating that the explanations provided lacked transparency. He noted that such a security breach would not have happened if adequate measures had been implemented in advance. He also asked whether Safe{Wallet} had protection against other people spending money and against threats posed by hackers gaining access to the developers’ computers.
The attack, attributed to the notorious Lazarus Group, has intensified concerns over cybersecurity vulnerabilities in crypto wallets. In response, Zhao pointed out that both self-custody wallets and multi-signature setups need to enhance security to avoid future hacks like this one. He also urged players in the industry to increase cooperation to improve the verifiability and transparency of cryptocurrencies.
Safe{Wallet}’s Response to Criticism
Safe{Wallet} has defended its security measures, stating that the breach did not originate from flaws in its smart contracts or frontend services. The company has also said that corrective measures have been implemented, such as restructuring its infrastructure and changing all passwords. However, Zhao and other industry experts are cynical about whether such measures are enough to protect from future cyber attacks.
As the investigation continues, the crypto industry remains on high alert, with increased scrutiny on security practices among wallet providers. CZ’s criticism underscores the need for more robust security frameworks to protect digital assets from increasingly sophisticated cyber threats.
Also Read: Ripple Expands Institutional Crypto Custody in South Korea Through BDACS Partnership
