Multisig is not enough guarantee your money is secure in Defi?

[shinratensei_]

Recently I found the Triple H wallet hacking on my timeline, the hacking caused $9.7M to be drained and the exploiter already bridged funds to Ethereum but it got me thinking.

• Humanity protocol, 3-of-6 multisig, still got hacked loss ~$32 M
• UXLINK, multisig compromised, ~$27M gone
• Drift protocol, 2-of-5 multisig compromise, ~$285M gone

And many more stil counting...

It got me thinking, it seems using multisig doesn't even guarantee safety of Defi because the developer of the project, the people who you expect to know what they are doing, is doing their job badly.
If the hack was because bug and contract code exploit even with proper audit, understandable. However, even with multisig and these projects are still hacked, it feels so strange.

At this point, do you think it's still worth staking or locking any amount of money in Defi? And do you think multisig has become pointless in the hand of these altcoin developers?

I'm not blaming the multisig, the multisig is working as intended but it seems doesn't matter what security measure you take, if the developers are incompetent, it will break regardless.

[fullfitlarry]

At this point, do you think it's still worth staking or locking any amount of money in Defi? And do you think multisig has become pointless in the hand of these altcoin developers?

With that way hackers are breaking in? I don't think it's worth the risk. And just imagine waking up one day and seeing that you have been hack and all money is gone.

I'm not blaming the multisig, the multisig is working as intended but it seems doesn't matter what security measure you take, if the developers are incompetent, it will break regardless.

Developers have the burden of proof here. They're the one who needs to hardened their code to protect us from the loopholes and exploits that cyber criminals are going to see. So yes, it doesn't matter your security practice, if the code itself is the problem then everything is going to break apart.

[_act_]

Also the Bybit exchange that was hacked that billion of dollar was stolen in some coins was from a multisig wallet which is another example.

At this point, do you think it's still worth staking or locking any amount of money in Defi? And do you think multisig has become pointless in the hand of these altcoin developers?

Staking or locking my money? I can not do that because it is not worth it for me. Multisig is not pointless, but who knows if it is insider information. I do not trust anyone among them.

[rat03gopoh]

While multisig wallets remain useful, in the case of a hack like this, the most likely scenario is the involvement of one or more insiders. Essentially, interacting with Defi still places trust in a third-party system, as you must transfer funds to an address(es) you don't control. This is a potential point of failure.