Safe, the leading multiparty crypto wallet formerly known as Gnosis Safe, has taken a decisive step in its evolution with the launch of Safe Labs, a dedicated development unit designed to streamline operations and reinforce its product vision. The move comes just months after the platform found itself entangled in February’s staggering $1.4 billion ByBit hack—the largest crypto theft on record—though its core infrastructure remained intact.
Until now, Safe had relied on external developers, a common industry practice. But with Safe Labs, the project is bringing technical development in-house under the stewardship of the Safe Foundation, its nonprofit governing body. According to Safe Labs CEO Rahul Rumalla, the shift isn’t just about restructuring—it’s about rejecting the false choice between security and usability that has long plagued crypto.
“This industry forces you to compromise—more security means less convenience, and vice versa,” Rumalla told CoinDesk in an interview. “We’re stepping back and saying no. We refuse to accept that trade-off.”
### A Wake-Up Call
The ByBit breach, orchestrated by North Korea’s notorious Lazarus Group, didn’t exploit Safe’s smart contracts. Instead, hackers infiltrated its web app, weaponizing the very principles—anonymity, open-source transparency—that Safe champions. By manipulating a transaction signature, they siphoned funds from ByBit’s CEO.
Yet, despite the high-profile incident, user trust held firm. Safe saw no meaningful drop in activity, still processing 10% of all transactions across Ethereum Virtual Machine (EVM) networks. For Rumalla, the attack underscored a sobering reality: “We’re not just defending against cyberattacks anymore. This is cyber warfare, and the entire ecosystem needs to adapt.”
### From Decentralized Ideals to Institutional Realities
Safe Labs’ formation mirrors a broader trend among crypto’s elite. Protocols like Morpho and Polygon have similarly pivoted toward more structured governance to accelerate decision-making. But Safe’s ambitions go beyond bureaucracy—its team is crafting a more “opinionated” V2 wallet, tailored for enterprises and power users.
A forthcoming subscription tier, tentatively dubbed *Safe Pro*, will cater to institutions demanding higher security and customization. “We’re packaging a product for users who need more,” Rumalla said, emphasizing speed and independence as critical to Safe Labs’ mandate.
With $60 billion in assets secured and over $1 trillion in lifetime transaction volume, Safe remains a titan of self-custody. Its Berlin-based team, now 40 strong, is betting that blending bold product direction with uncompromising ideals will set the standard for wallets in crypto’s next era.
As Rumalla put it: “Our mission is simple—making self-custody easy and secure. That’s a win for everybody.”
