Cross-chain protocol Squid hacked; over $3 million stolen in two hours

KuCoinFlash

Release Time: 05/25/2026 11:57:03

Summary

On-chain news revealed a major exploit targeting Squid’s RouterModule on the Ethereum and Base networks on May 25. Blockaid reported that 86 Gnosis Safe wallets were drained within two hours, resulting in losses of approximately $3 million. The attacker converted the stolen assets into DAI via a Uniswap V3 pool. An ongoing investigation is underway. Squid recently announced a $6 million funding round led by North Island Ventures, with Ripple and others participating. A protocol update is expected as the team responds to the breach.

BlockBeats report: On May 25, the on-chain security firm Blockaid announced it had detected ongoing attacks targeting the SquidRouterModule on the Ethereum and Base networks. Within approximately two hours of the attack, 86 Gnosis Safe wallets were drained, resulting in cumulative losses of approximately $3 million.

The attacker then exchanged all stolen assets for DAI through their controlled Uniswap V3 pool. Blockaid stated that the incident is still under investigation.

Notably, Squid recently announced the completion of a $6 million funding round led by North Island Ventures, with participation from Ripple, Dialectic, Borderless Capital, Scenius Capital, and angel investors from projects including Axelar, Ledger, Polymer Labs, Enso, and Peanut.

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