The Bybit Breach: Why Multi-Sig Alone Isn’t Enough
Contents
The Bybit Breach: Why Multi-Sig Alone Isn’t Enough and How Cobo Tackles the Challenges
February 24, 2025
The recent Bybit hack, which resulted in the theft of over $1.5 billion worth of assets, exposes the vulnerabilities inherent in even the most secure digital asset storage solutions.
As attackers grow more advanced, traditional assumptions about cold storage, multi-signature wallets, and private key management need urgent reassessment.
The Cobo security team dissects what went wrong and, more importantly, how institutions can reinforce their custody security against such breaches.
How the Attack Happened
On February 21, 2025, Bybit’s cold wallet operators observed a transaction on their local Safe{Wallet} page that appeared to be a legitimate token transfer to a hot wallet address. After verifying it, they proceeded to sign the transaction. However, the transaction was actually a manipulation of Bybit’s cold wallet Safe{Wallet}’s implementation contract, resulting in the attacker obtaining the Safe{Wallet}’s ownership.
Blockchain investigators have linked this attack to …
February 24, 2025
The recent Bybit hack, which resulted in the theft of over $1.5 billion worth of assets, exposes the vulnerabilities inherent in even the most secure digital asset storage solutions.
As attackers grow more advanced, traditional assumptions about cold storage, multi-signature wallets, and private key management need urgent reassessment.
The Cobo security team dissects what went wrong and, more importantly, how institutions can reinforce their custody security against such breaches.
How the Attack Happened
On February 21, 2025, Bybit’s cold wallet operators observed a transaction on their local Safe{Wallet} page that appeared to be a legitimate token transfer to a hot wallet address. After verifying it, they proceeded to sign the transaction. However, the transaction was actually a manipulation of Bybit’s cold wallet Safe{Wallet}’s implementation contract, resulting in the attacker obtaining the Safe{Wallet}’s ownership.
Blockchain investigators have linked this attack to …