Safe Wallet has been targeted in the recent $1.5 billion Bybit hack, with hackers exploiting its infrastructure. The attack stemmed from a compromised developer machine, enabling unauthorized access through a disguised malicious transaction. Safe Wallet assured users that its smart contracts remained uncompromised during the incident, as confirmed by external security researchers.

Following the breach, Safe Wallet has gradually reinstated its services on the Ethereum mainnet after a complete overhaul of its infrastructure and security measures. Despite these efforts, users are advised to remain vigilant while conducting transactions through Safe Wallet.

Criticism has arisen within the crypto community regarding Safe Wallet's response to the hack. Industry figures like Changpeng Zhao have questioned the transparency and thoroughness of the company's explanation, particularly concerning the security of the developer machine, code deployment, and ledger verification.

An industry-wide push for improved transaction verifiability has been announced by Safe Wallet, with a detailed post-mortem report to follow the investigation's conclusion. Analysts have highlighted the need for enhanced security management to prevent similar supply chain attacks in the future.

Notably, the FBI has confirmed the involvement of the Lazarus Group in the Bybit hack, where 40,000 ETH was stolen from Bybit's cold wallet. The agency identified the operation as "TraderTraitor" and has urged virtual asset service providers to block transactions associated with the group's Ethereum addresses involved in laundering efforts.