PANews reported on May 22 that according to Cointelegraph, a multi-signature encrypted wallet with permissions from 12 different blockchain networks has recently attracted attention. Once this wallet is hacked, the network involved may face a risk of losing up to $121 million in funds. L2Beat researcher Luca Donno revealed that these networks include Zora, Aevo, Hypr, Orderly, Ancient8, Lyra, Mode, Pgn, Parallel and Metal - all of which were created using Conduit rollup creation software.
However, Conduit founder Andrew Huang said that this wallet requires three of the five signatures in the team to execute transactions, and the private keys are stored in the hardware wallet, so it is only possible to hack it through "physical means to obtain the private keys of 3/5 people." To further improve security, Huang plans to upgrade the system to a multi-signature of 5/7 in the coming weeks. He believes that as Layer 2 enters the "second stage" of decentralization, the risk of centralization will be further reduced.
Data shows that multiple Conduit-based networks use the same wallet to handle tasks such as upgrading network bridges. L2Beat data shows that the Aevo account has "unlimited upgrade permissions" and the ability to "possibly gain access to all funds." The total locked value (TVL) of the Conduit network Lyra exceeds $20 million, and L2Beat lists the same wallet as "ConduitMultisig", which also has the ability to "access all funds."
