The recent $1.4 billion hack of the Bybit exchange has raised alarms about the effectiveness of security systems in centralized exchanges (CEX). Despite the expectation of reliable defenses, there are indications that these mechanisms may not be as robust as believed. Security experts are investigating the breach, contemplating potential insider involvement at Bybit. The shortcomings of the multisig wallet system, particularly its complexity, have come under scrutiny. The reliance on Gnosis Safe for managing signatures may have contributed to the hack, illustrating how intricate systems can lead to mismanagement and vulnerabilities.
The $1.4 billion hack of Bybit highlights the vulnerabilities in centralized exchange security, questioning the reliability of multilayered defense mechanisms that many assume to be robust.
Security expert suggests that the multi-signature approach employed by Bybit was mismanaged, with complexities leading to misunderstandings and vulnerabilities that attackers exploit.
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