Ledger CTO Charles Guillemet has clarified that the recent hack on Drift Protocol was not due to a smart contract vulnerability but rather a compromise of the protocol's multisig mechanism. The attackers allegedly infiltrated the devices of multisig holders or stole sufficient private keys, misleading operators into approving malicious transactions. This method mirrors a previous attack on Bybit, suspected to involve North Korean hackers. A significant amount of the stolen funds has been transferred to wallets controlled by the hackers. Guillemet urges the industry to enhance endpoint detection capabilities and adopt hardware-backed plaintext signatures to mitigate such operational security risks.