Safe Establishes New Development Firm to Attract Institutions and Tackle Crypto’s ‘Cyber Warfare’ Era
Safe, formerly Gnosis Safe, has launched Safe Labs, a new development unit aiming to streamline operations and product development following its involvement in the $1.4 billion ByBit hack. This internal development team replaces the previous outsourcing model common in the crypto industry. Safe Labs operates under the Safe Foundation, a non-profit organization.
The ByBit hack, attributed to North Korea’s Lazarus Group, exploited vulnerabilities in Safe’s user-facing web application, not its core smart contracts. This highlighted a tension between security and convenience, a compromise Safe Labs aims to overcome. Despite the breach, user trust remained high, with minimal user churn and continued processing of 10% of EVM transaction volume. The incident spurred a shift from merely defending against cyberattacks to preparing for “cyber warfare.”
This restructuring mirrors similar moves by Morpho and Polygon, prioritizing streamlined decision-making and accountability. Safe Labs is also focusing on product design, developing a “V2” wallet with a more defined direction, especially for institutional users. A subscription service, “Safe Pro,” targeting enterprise and institutional clients with higher security needs and customization demands, is in the works.
The transition to Safe Labs emphasizes the need for faster development cycles. This independent entity allows for alignment with the mission while maintaining operational flexibility. With over $60 billion in total value locked and over $1 trillion in historical transaction volume, Safe remains a significant player in self-custody solutions. The 40-person Berlin-based team is focused on creating a user-friendly and secure self-custody experience, combining open-source principles with a more directed product strategy. Their goal is to make self-custody accessible and secure, benefiting all users in a growing on-chain economy.
