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What happened?
The recent Bybit hack, the largest crypto theft in history, exposed major vulnerabilities in Web3’s reliance on Web2 infrastructure. The breach occurred due to a compromised AWS S3 bucket that allowed attackers to inject malicious code into Safe{Wallet}’s JavaScript files. This inside job enabled hackers to reroute transactions without detection, ultimately draining Bybit’s cold wallet.
Who does this affect?
This affects not only Bybit users but also the broader crypto community that relies on both Web3 and Web2 infrastructures. Crypto exchanges, decentralized applications (dApps), and individual users are at risk due to similar vulnerabilities in their systems. The attack serves as a wake-up call for everyone involved in the crypto space to reassess their security practices and reliance on centralized components.
Why does this matter?
The hack highlights the significant market impact of existing security gaps between Web3 and Web2 technologies. It shakes confidence in the safety of decentralized finance and could deter potential investors witnessing such vulnerabilities. As long as Web3 continues to depend on Web2 architectures, markets will face ongoing risks of substantial financial losses from future attacks.
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