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Cobo Launches Safe{Wallet} Co-Signing Service For Crypto Transactions

0 8

Cobo Launches Safe{Wallet} Co-Signing Service For Crypto Transactions

Cobo, a leading digital asset custody and wallet technology provider, has announced the launch of its Safe{Wallet} co-signing service. This new service allows users to independently parse and manage the risk of Safe multi-signature transactions within custody addresses, thereby strengthening transaction security.

Cobo’s Safe Wallet Co-Signing Service for Risk Control

This development follows Bybit’s recent hacking incident, which resulted in a $1.4 billion loss linked to vulnerabilities in Safe’s infrastructure.

The Safe{Wallet} solution integrates Cobo’s address MPC or Web3 wallet for signature participation. As an independent third party, Cobo employs separate signature solutions to avoid the single-point risks associated with relying on a common infrastructure among signatories. Additionally, Cobo’s advanced risk control system detects potential faults in each transaction, preventing unexpected behaviors in real-time.

In light of the Bybit hack, Safe{Wallet} recently released a forensic report that has drawn skepticism from former Binance CEO Changpeng “CZ” Zhao.

Safe’s report shared that the hacker targeted a Safe developer’s machine, leading to a malicious transaction that drained Bybit’s wallet. The report also informed that no security flaws were found in Safe’s smart contracts or frontend.

However, CZ raised several unresolved questions regarding the incident, including: 1. How a developer machine was compromised (e.g., social engineering or a virus). 2. How a developer machine had access to an account operated by Bybit and whether any code was deployed to production from that machine. 3. How the attackers bypassed the Ledger verification step with multiple signers (possibly through blind signing or improper verification).

I usually try not to criticize other industry players, but I still do it once in a while. 😂

This update from Safe is not that great. It uses vague language to brush over the issues. I have more questions than answers after reading it.

1. What does “compromising a Safe… https://t.co/VxywHyzqXb

— CZ 🔶 BNB (@cz_binance) February 26, 2025

Zhao also questioned, “What lessons can other ‘self-custody, multi-sig’ wallet providers and users learn from this?”

Also Read: Bybit CEO: Bybit Has Fully Made Up for the ETH Shortfall

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