Overview of the Bybit Security Breach
On February 21, 2025, cryptocurrency exchange Bybit suffered a devastating attack when a Safe multi-signature wallet was compromised, resulting in the theft of approximately $1.5 billion in digital assets—the largest crypto heist in history. While the Safe multi-sig smart contract itself remained intact, attackers exploited procedural vulnerabilities during the signing process:
Three authorized signers were deceived into approving malicious transactions due to:
- Lack of independent verification mechanisms
- Blind signing through hardware wallets
- Frontend interface manipulation
This incident follows similar attacks on:
- WazirX (July 2024): $230M stolen
- Radiant Capital (October 2024): $50M stolen
These events underscore persistent security gaps in wallet infrastructure despite industry-wide focus on smart contract safety.
Anatomy of the Attack
Forensic analysis reveals the attack vector:
Initial Compromise (Feb 19, 2025):
- Malicious contract deployed in advance
- Safe{Wallet} developer's system breached
- Malicious JavaScript injected into AWS S3-hosted frontend code
Execution Phase (Feb 21, 2025):
- Legitimate fund transfer operation served as cover
- Signers saw normal interface (actual payload differed)
- Ledger hardware wallets performed blind signing
Exploitation:
- DelegateCall executed attacker's malicious logic
- Wallet logic contract replaced within 2 minutes
- Full control achieved before detection
👉 Learn how MPC technology prevents such attacks
Critical Vulnerabilities Exposed
Frontend Single Points of Failure
Most DeFi users rely on centralized frontends to construct transactions—creating systemic risk when interfaces aren't redundantly verified.
Device Security Gaps
The breach originated from compromised developer hardware, highlighting:
- Inadequate endpoint protection
- Overprivileged access controls
- Insensitive change detection systems
Safe Contract Design Flaws
The execTransaction function's DelegateCall capability becomes dangerous when:
- Users lack technical expertise for validation
- Batch transactions require external contract calls
- No native safeguards against malicious logic injection
Hardware Wallet Limitations
Current hardware solutions often:
- Fail to decode complex transactions
- Provide minimal context before signing
- Lack standardized ABI interpretation
SINOHOPE's Security Framework
Core Principles
Defense-in-Depth:
- Physical device isolation
- Multi-factor authentication
- Principle of least privilege
Operational Best Practices:
- Dedicated security devices
- Network segmentation
- Continuous endpoint monitoring
MPC Cold Wallet Solution
SINOHOPE's Multi-Party Computation (MPC) implementation offers:
| Feature | Advantage Over Multi-Sig |
|---|---|
| Threshold signatures | Eliminates single-point key failure |
| Chain-agnostic design | Cross-platform compatibility |
| No smart contract risk | Prevents arbitrary logic execution |
| Enterprise-grade controls | Built-in approval workflows |
👉 Discover enterprise MPC wallet solutions
Enhanced Safe{Wallet} Verification
For organizations requiring DeFi interaction, SINOHOPE supplements Safe with:
- Independent transaction simulation
- Intent parsing with risk scoring
- Enterprise approval pipelines
- Visual execution previews
Industry-Wide Security Initiatives
SINOHOPE proposes collaborative measures:
Standardization:
- Unified security benchmarks
- Interoperable safety components
Education:
- Structured security certification
- Incident response training
Ecosystem Cooperation:
- Threat intelligence sharing
- Joint contingency protocols
FAQ
Q: How does MPC differ from traditional multi-sig?
A: MPC distributes cryptographic key shards without ever reconstructing the complete private key, whereas multi-sig relies on separate signatures from multiple keys.
Q: Can SINOHOPE's solution prevent frontend attacks?
A: While no system eliminates all risks, our independent transaction validation significantly reduces susceptibility to interface manipulation.
Q: Is specialized hardware required?
A: The base MPC solution works on standard devices, though we recommend dedicated security modules for high-value operations.
Q: How quickly can organizations migrate?
A: Typical enterprise deployments complete within 2-4 weeks depending on integration complexity.
Q: What audit standards apply?
A: We undergo biannual third-party audits including:
- Cryptography reviews
- Network penetration testing
- Social engineering assessments
Q: Are there regulatory benefits?
A: MPC solutions facilitate compliance with financial-grade security requirements under most jurisdictions' digital asset regulations.