{"id":602021,"date":"2026-05-25T10:45:28","date_gmt":"2026-05-25T14:45:28","guid":{"rendered":"https:\/\/ambcrypto.com\/?p=602021"},"modified":"2026-05-25T11:19:27","modified_gmt":"2026-05-25T15:19:27","slug":"squid-distances-core-protocol-from-safe-module-exploit-affecting-86-wallets","status":"publish","type":"post","link":"https:\/\/ambcrypto.com\/squid-distances-core-protocol-from-safe-module-exploit-affecting-86-wallets\/","title":{"rendered":"Squid distances core protocol from Safe module exploit affecting 86 wallets"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Cross-chain protocol Squid has denied involvement in a smart contract exploit that drained roughly <\/span><b>$3m<\/b><span style=\"font-weight: 400;\"> from dozens of <\/span><b>Gnosis Safe wallets across Ethereum and Base. <\/b>It<span style=\"font-weight: 400;\"> follows public reports linking the incident to a contract named &#8220;SquidRouterModule.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Blockchain security firm Blockaid said on <\/span><b>25 May<\/b><span style=\"font-weight: 400;\"> that it detected an ongoing exploit affecting 86 Gnosis Safes over a roughly two-hour period.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to Blockaid, the attacker exploited a vulnerability in the <\/span><b>executeSameChainActions()<\/b><span style=\"font-weight: 400;\"> function tied to a contract verified as &#8220;SquidRouterModule.&#8221; This allowed malicious transactions to impersonate authorized delegates and execute arbitrary token swaps from victim wallets.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The stolen assets were allegedly swapped through attacker-controlled <\/span><b>Uniswap V3 pools<\/b><span style=\"font-weight: 400;\"> before being consolidated into roughly <\/span><b>$3.07m worth of DAI<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><b>Squid says the vulnerable module was not part of its core protocol<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">In a public response, Squid said the exploit did not affect its core contracts, users, or integrations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The protocol stated that the vulnerable module was a &#8220;third-party smart-wallet product&#8221; that integrated with Squid. However, it was not built, deployed, or operated by the company itself.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;The accurate framing is: a third-party SquidRouterModule was exploited, not Squid&#8217;s Router contract,&#8221; the company wrote.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Squid also claimed the vulnerable contract accepted a caller-supplied constant string as proof that a message was secure. This allowed attackers to execute arbitrary calldata after the module was added as a trusted Safe module.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Because trusted Safe modules can spend assets without requiring additional signatures, attackers were allegedly able to drain tokens directly from affected wallets.<\/span><\/p>\n<h2><b>Exploit highlights growing risks around wallet modules<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The incident underscores growing security concerns surrounding third-party wallet modules, delegated execution systems, and composable DeFi integrations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Attackers increasingly exploit external permissions, middleware infrastructure, and auxiliary modules connected to broader ecosystems. They do this rather than targeting a protocol&#8217;s core contracts directly<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this case, the exploit allegedly combined Safe module permissions, delegate execution paths, and manipulated Uniswap liquidity pools to facilitate the theft.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The attack also highlights how naming conventions and integrations can create reputational spillover during exploits. This happens particularly when vulnerable third-party contracts reference larger protocols.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Blockaid said the attacker deployed exploit contracts using Foundry tooling and created attacker-controlled tokens and liquidity pools as part of the exploit flow.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At the time of writing, no indication had emerged suggesting Squid&#8217;s main router contract or core user funds were compromised.<\/span><\/p>\n<hr \/>\n<h2><b>Final Summary<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Blockaid said an exploit involving a contract named &#8220;SquidRouterModule&#8221; drained roughly $3m from 86 Gnosis Safe wallets across Ethereum and Base.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Squid said the vulnerable module was a third-party integration unrelated to its core protocol or router contracts.<\/span><\/li>\n<\/ul>\n<hr \/>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Squid incident is drawing renewed attention to security risks tied to delegated permissions, wallet modules, and composable DeFi integrations.<\/p>\n","protected":false},"author":76,"featured_media":602022,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[44,66,3,4,20],"tags":[],"class_list":["post-602021","post","type-post","status-publish","format-standard","has-post-thumbnail","category-global-news","category-new-news","category-news","category-social","category-trading-view"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.3) - 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