bybit.com hackat på 1.4 miljarder usd!

Here are the craziest things about the $1.4bn ByBit hack:

1⃣ It wasn't only the largest hack ever, but some could argue the largest theft.

2⃣ It was an incredibly sophisticated hack that required not only knowing who all the multisig signers were, but also infiltrating their devices. It wasn't just sophisticated malware but also insane levels of social engineering. It's been confirmed as DPRK.

3⃣ It showcased just how treacherous blind-signing is. When we use our hardware wallets to send transactions, we are presented with hashes & code. Most just assume all is well and sign. This could happen to anyone who doesn't parse every detail in the signing process.

4⃣ It's also a massive success story. Despite the ungodly size of the hack, Bybit was still able to process withdrawals & operations ran normally. They managed to secure bridge financing to plug the hole and other exchanges / ecosystem participants rallied to help.

Main takeaways:

It's a security wake up call and requires us to rethink cold storage, software supply chains, personal access & blind signing.

It's also a demonstration of how competent & fully backed exchanges respond to hacks.

But, no matter what, it's the clearest example of why NOTHING will ever beat self-custody.

Not your keys. Not your crypto.

One of our Ethereum cold wallets is compromised in a way that when we sign the specific transaction to transfer from cold wallet to warm wallet, the hacker, we beleive, replaced that message into changing the smart contract of the wallet. Therefore he gained control. This would not have happened on bitcoin because it is not a smart contract multisig type of structure.