The recent Bybit hack, the largest loss of funds to cyber hackers involving a cryptocurrency exchange, highlights the necessity for robust enterprise-grade custody solutions combined with transparency. Unlike past incidents, this breach was due to sophisticated social engineering rather than technical failures. The hack involved the compromise of a developer machine linked to Safe, followed by malicious JavaScript deployment that manipulated transaction confirmations. This event emphasizes that strong technical security measures alone are insufficient without proper implementation. A layered security approach—including multi-layered verification processes and limited interaction scopes—can effectively mitigate such risks. Furthermore, adopting proof-of-reserve software can enhance transparency in custody setups, confirming key access meets security standards. As institutional adoption of digital assets grows, custody providers must openly share their security models and the impact of underlying protocols to improve resilience against potential attacks. Ultimately, maintaining vigilance and evolving security protocols is crucial for the future of Bitcoin and crypto-assets.

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