Squid Clarifies It Was Not Behind $3.2 Million Gnosis Safe Exploit

[madmax]

Cross-chain routing protocol Squid has distanced itself from a $3.2 million exploit that impacted 86 Gnosis Safe wallets across Ethereum and Base. The confusion stemmed from the compromised contract being named "SquidRouterModule," leading some early reports to incorrectly link the incident to Squid’s core infrastructure.

According to the team, the exploited contract was a third-party Safe module that merely integrated with multiple protocols, including Squid. The protocol emphasized that its official router contract was not affected and that no Squid user funds, balances, or approvals were compromised during the attack.

Security researchers found that attackers exploited a flawed verification mechanism within the module, allowing them to execute arbitrary transactions and drain funds from affected wallets. The incident highlights growing concerns around third-party integrations and smart wallet modules, even when core protocol infrastructure remains secure.

[tradelikepro]

crypto security in 2026: your protocol can be perfectly safe and still spend the week explaining why a contract with your name on it wasn't actually yours