Squid Distances Itself from $3.2 Million Exploit of Third-Party Module

A third-party Gnosis Safe module named 'SquidRouterModule' was exploited, draining around $3.2 million from 86 Safes in about two hours. The exploit was confirmed by security firms Blockaid and PeckShield, revealing that the module was not developed by the Squid protocol. The attacker used a vulnerability that allowed arbitrary calldata execution by supplying a constant string as proof of message security. This enabled the attacker to impersonate authorized delegates and execute unauthorized swaps through Uniswap V3 pools. The stolen assets were converted into a worthless token and later consolidated into approximately 3.07 million DAI. Squid clarified that the module was a third-party product and not affiliated with their team. In 2026, DeFi has seen over $770 million in losses, with a record number of incidents reported in April. Squid has completed nine independent security audits and maintains high uptime.

Key Points: • A third-party module exploited, resulting in $3.2 million loss from 86 Safes. • The exploit allowed attackers to execute arbitrary transactions without signatures. • Squid clarified that the vulnerable module was not created or managed by them.