Safe, the widely-used multiparty crypto wallet formerly known as Gnosis Safe, has taken a significant step forward by launching Safe Labs, its new dedicated development unit. This move aims to streamline operations and refine its product strategy following the massive $1.4 billion ByBit hack in February—the largest crypto heist to date.
Safe Labs will serve as the core engine for development, replacing the previous model where Safe outsourced technical work to external firms—a common approach in the crypto space. Chief Executive Rahul Rumalla explained that Safe Labs will operate directly under the Safe Foundation, a nonprofit organization, allowing for more focused and agile product development.
In an exclusive interview, Rumalla shared that this strategic shift reflects a broader vision: to create products that honor the core principles of cypherpunk culture—such as privacy, self-custody, and transparency—while also meeting the practical needs of enterprise clients. “The current framework often forces compromises—more security can mean less convenience, and vice versa,” Rumalla noted. “At Safe Labs, we reject that trade-off. We aim to build solutions that don’t force us to choose between security and usability.”
The creation of Safe Labs was accelerated by the ByBit hack, which, although it didn’t compromise Safe’s smart contracts, exposed vulnerabilities in its web application. The attack, attributed to North Korea’s Lazarus Group, tricked the ByBit CEO into approving a transaction that rerouted funds—highlighting the evolving nature of cyber threats in crypto. Rumalla emphasized that this event underscored the importance of shifting from merely defending against cyberattacks to understanding cyber warfare at a systemic level.
Despite the breach, user confidence in Safe remains strong. The platform experienced virtually no user churn and still processes about 10% of all transaction volume across Ethereum Virtual Machine-compatible networks. Rumalla stressed that the real challenge is defending against cyber warfare, which demands a mindset change across the entire crypto ecosystem.
In parallel with the new development structure, Safe Labs is also revamping its product offerings. The team is working on a “V2” version of its wallet, which Rumalla describes as more “opinionated”—meaning it will have a bolder, more targeted direction, especially for institutional users. One key initiative is the upcoming Safe Pro subscription plan, tailored specifically for enterprise clients with higher security needs and a desire for customization.
“To operate at startup speed, we need independence,” Rumalla explained. “This new structure allows us to stay mission-focused while executing more nimbly.”
With over $60 billion in total value locked and more than $1 trillion in transaction volume historically processed, Safe remains one of the most battle-tested self-custody platforms in crypto. Based in Berlin and with a team of around 40 experts, Safe is betting that its next chapter—focused on opinionated, user-centric product design aligned with its open-source ethos—will shape the future of crypto wallets in a trillion-dollar on-chain economy.
“Our mission is simple: making self-custody easy and secure,” Rumalla affirmed. “That’s a win for everybody.”
