PANews reported on May 22 that, according to Cointelegraph, a multi-signature crypto wallet with permissions from 12 different blockchain networks has recently drawn attention. If this wallet is compromised, the involved networks could face a potential loss of up to $121 million. 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 stated that the wallet requires three out of five signatures from the team to execute transactions, with private keys stored in hardware wallets. Therefore, an intrusion would only be possible through "physical means to obtain the private keys of 3 out of 5 individuals." To further enhance security, Huang plans to upgrade the system to a seven-out-of-five multi-signature in the coming weeks. He believes that as Layer 2 enters the decentralized "second stage," centralization risks will be further reduced.

Data shows that multiple Conduit-based networks use the same wallet to handle tasks such as network upgrades and bridging. L2Beat data indicates that the Aevo account has "unrestricted upgrade permissions" and the ability to "potentially access all funds." The total value locked (TVL) in Conduit network Lyra exceeds $20 million, and L2Beat lists the same wallet as "ConduitMultisig," which also has the ability to "access all funds."