In response to February’s historic $1.4 billion ByBit crypto heist, Safe, the prominent multi-signature crypto wallet platform formerly known as Gnosis Safe, has launched a new internal development unit, Safe Labs. The initiative marks a major shift in Safe’s operational model, moving away from outsourcing development to consolidating technical efforts under a dedicated, foundation-owned team.
According to Rahul Rumalla, CEO of Safe Labs, this pivot was triggered by the alarming breach linked to North Korea’s Lazarus Group, which exploited Safe’s user interface, not its core smart contracts. The hackers inserted malicious code into the platform’s front end, tricking ByBit’s CEO into authorizing a fraudulent transaction.
While Safe’s core infrastructure remained intact, the incident exposed vulnerabilities at the user-facing level. It also prompted a broader reconsideration of how to secure crypto platforms amid increasingly sophisticated threats. “We’re not just defending against cyberattacks,” Rumalla noted, “we are defending against cyber warfare.”
Balancing Ideals with Institutional Needs
Rumalla emphasized that Safe Labs reflects a commitment to develop secure and user-friendly products without compromising either value. “Traditionally, the industry has been forced to choose between convenience and security,” he said. “We reject that model at Safe Labs.”
The new development approach is designed to support both cypherpunk ideals, such as privacy, open-source transparency, and self-custody, and the growing demands of institutional clients. This dual focus is driving the creation of a more “opinionated” product roadmap, tailored especially for users requiring greater customization and robust security features.
To that end, Safe Labs is currently developing “Safe Pro,” a subscription-based product aimed at enterprise and institutional clients. The tool is part of the next version of its wallet — Safe V2 — which will feature a stronger design direction and enhanced capabilities for high-value, high-security crypto operations.
New Structure for a Growing Threat Landscape
The formation of Safe Labs places the new unit directly under the Safe Foundation, giving it both autonomy and strategic alignment. This mirrors similar trends across the Web3 space, as projects like Morpho and Polygon restructure to increase agility and accountability.
With a team of around 40 developers based in Berlin, Safe Labs aims to function at startup speed while maintaining Safe’s open-source ethos. “We need to align where it matters on mission but be independent in how we execute,” Rumalla explained.
Despite the recent attack, Safe remains a leader in self-custody solutions, handling 10% of all Ethereum Virtual Machine (EVM) transaction volume and securing over $60 billion in total value locked. Its track record, combined with this structural transformation, positions Safe to lead the charge in what Rumalla describes as the “trillion-dollar on-chain economy” of the near future.
“Our mission is simple,” he concluded. “Making self-custody easy and secure, that’s a win for everybody.”
