Recent Security Incidents on Nomad and Solana Wallets: Guide to Creating and Using Gnosis Safe Multisig Wallets

Aug 11, 2022

Security breaches in blockchain projects and crypto wallets remain a persistent challenge, often leading to unintended asset losses for users. Recent incidents include:

• Nomad Bridge Exploit (Aug 2, 2022): A contract vulnerability drained $190 million, disrupting linked DeFi protocols.
• Solana Wallet Mass Theft (Aug 3, 2022): Slope Wallet’s flaw exposed private keys, compromising SOL and USDC holdings.

👉 Protect your assets with secure multisig solutions

The Domino Effect of Nomad’s Breach

Nomad’s exploit triggered chaos across ecosystems:

• Evmos Token Volatility: Diffusion Finance’s USDC/Evmos pair spiked unnaturally, while Osmosis DEX rates stayed stable. IBC transfers froze temporarily.
• madUSDC Depegging: Nomad-linked USDC was later relabeled "madUSDC," reflecting its lost peg.

Solana’s Slope Wallet Vulnerability

Phantom Wallet users were affected due to Slope’s security lapse:

1. Root Cause: Private keys stored in plaintext by Slope.
2. Impact: Unauthorized transfers to attacker-controlled addresses.
3. Response: Solana Foundation urged migration to non-Slope wallets.

Securing Assets with Gnosis Safe Multisig Wallets

Step-by-Step Creation on Arbitrum

1. Connect Wallet

   • Link MetaMask to Arbitrum network.

2. Name Your Wallet

   • Assign a recognizable label (e.g., “Team Treasury”).

3. Set Owners & Thresholds

   • Example: 2/3 = 3 owners, 2 signatures required per transaction.

4. Deploy & Fund

   • Pay ETH gas fees to activate the contract address.

Using Gnosis Safe for Transactions

• Swap ETH/USDC via Uniswap:

  1. Owner 1 proposes the swap → signs.
  2. Transaction queues await Owner 2’s confirmation.
  3. After final signature, swap executes.

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FAQs

Q: Is Gnosis Safe free to create?
A: No—deploying the smart contract requires ETH for gas.

Q: Can I change owners later?
A: Yes, but existing owners must approve updates.

Q: What’s the safest threshold?
A: 2/2 or 3/5 balances security and practicality.

Q: Does Gnosis support non-EVM chains?
A: Currently, EVM-compatible chains like Arbitrum/Polygon are supported.

Key Takeaways

• Multisig wallets mitigate single-point failures.
• Threshold settings (e.g., 2/3) tailor security to needs.
• Always audit connected apps—even Uniswap requires owner consent.

Pro Tip: Combine Gnosis Safe with hardware wallets for maximum security.