Exploit of Safe Wallet Module Leads to $3.2M Theft

A vulnerability in the third-party module 'SquidRouterModule' exploited Safe wallets, resulting in a loss of $3.2 million. The attack affected at least 86 accounts on Ethereum and Base, with stolen tokens converted to Dai via Uniswap V3 pools. Blockchain security firm Blockaid reported that the exploit allowed attackers to impersonate authorized delegates, bypassing verification. Safe Labs CEO Rahul Rumalla indicated that the affected accounts were not operated on the official Safe Wallet product. The module had previously been flagged as malicious by Blockaid, which is part of Safe Shield's risk detection rules. The incident emphasizes the risks associated with third-party integrations in decentralized finance (DeFi) environments.

Key Points: • A vulnerability in the SquidRouterModule drained $3.2 million from Safe wallets. • The exploit affected at least 86 accounts across Ethereum and Base networks. • Safe Labs confirmed that the affected accounts were not part of the official Safe Wallet product.