Safe, the popular multi-signature cryptocurrency wallet formerly known as Gnosis Safe, has announced the creation of a new development unit, Safe Labs. This strategic shift aims to streamline operations and refine its product roadmap following the massive $1.4 billion ByBit hack in February, which marked the largest crypto heist to date. Safe Labs, operating under the Safe Foundation’s umbrella, will now centralize its technical development work internally, a departure from the common industry practice of outsourcing.
Post-Hack Pivot
The ByBit hack, orchestrated by the infamous Lazarus Group from North Korea, served as a turning point for Safe. Although the core smart contracts of Safe remained intact, the hackers exploited vulnerabilities in its web application, compromising ByBit’s CEO to redirect funds. “Our core values—anonymity, privacy, self-custody, transparency, open source—were weaponized against us,” noted Rahul Rumalla, CEO of Safe Labs, in an interview with CoinDesk. Despite the breach, user confidence in Safe has remained robust, with the platform sustaining its hold over 10% of transaction volumes across Ethereum Virtual Machine (EVM)-compatible networks.
Rumalla emphasized a paradigm shift from merely defending against cyberattacks to combating what he terms “cyber warfare.” This broader perspective demands a strategic evolution not only for individual projects but for the entire crypto ecosystem. “We’re defending cyber warfare, and that requires a mindset shift,” he stated. This shift aligns with broader industry trends, as seen in the Ethereum Foundation’s restructuring of its R&D division, which also aims to rethink design and development strategies.
From Ideals to Infrastructure
The establishment of Safe Labs mirrors trends observed in other prominent protocols like Morpho and Polygon, which have similarly moved to consolidate operations for better accountability and decision-making. Safe Labs is honing its focus on product innovation, particularly with its upcoming “V2” wallet, which promises a more assertive design direction tailored for institutional clients.
Rumalla revealed plans for a subscription model, dubbed Safe Pro, aimed at meeting the high-security and customization demands of enterprise users. “We’re going to basically package this opinionated product that caters to user segments with higher security needs,” he explained. Rumalla underscored the necessity of operating with the agility of a startup, which necessitated the formation of Safe Labs as a distinct entity to align mission-driven goals with independent execution strategies. This focus on institutional clients is reminiscent of SocGen’s Crypto Arm unveiling a dollar stablecoin on Ethereum and Solana, highlighting the growing trend of catering to enterprise needs in the crypto space.
With over $60 billion in total value locked and more than $1 trillion in historical transaction volume, Safe has cemented its reputation as one of the most resilient self-custody platforms in the crypto space. The Berlin-based team, now around 40 members strong, is betting that this next chapter—marked by a bold product vision that remains true to its open-source roots—will play a pivotal role in shaping the future of wallets in an evolving on-chain economy. “Our mission is simple: making self-custody easy and secure,” Rumalla concluded. “That’s a win for everybody.”
As Safe Labs embarks on this new journey, questions linger about how the crypto industry will adapt to the increasing sophistication of cyber threats. Will other companies follow suit in integrating development to enhance security, or will the decentralized ethos of outsourcing prevail? The coming months could offer a glimpse into the future strategies of crypto firms navigating a landscape fraught with both opportunity and risk.
Source
This article is based on: Safe Establishes New Development Firm to Attract Institutions and Tackle Crypto’s ‘Cyber Warfare’ Era
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
