ChainCatcher report: Yu Xian, founder of SlowMist, posted on X to analyze the Squid security incident, stating that sampled analysis revealed all related Safe wallets were single-signature, with different owners. However, the issue was not with private keys, but with a vulnerability in the module (SquidRouterModule) used by these Safe addresses—attackers could forge messages to easily bypass verification and initiate subsequent exchange operations to transfer funds from the target Safe wallets. Additionally, Yu Xian disclosed information about the attacker’s profit accumulation addresses. Previously, a third-party Gnosis Safe module exploited on Base and Ethereum resulted in approximately $3.2 million in losses, affecting 86 Gnosis Safe wallets that had added this contract as a trusted Safe Module. The contract is named “SquidRouterModule” on Basescan. Subsequently, Squid clarified that it was not affected by the Gnosis Safe-related vulnerability incident.
SlowMist's Yu Xian: The Squid security incident was caused by a vulnerability in the Safe Wallet module.
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Summary
Citing ChainCatcher, SlowMist founder Yu Xian explained that the Squid security breach resulted from a vulnerability in the SquidRouterModule used by Safe wallets—not from private key exposure. Attackers forged messages to bypass verification and drained funds from 86 Gnosis Safe wallets on Base and Ethereum, totaling $3.2 million. Squid later confirmed it was unaffected. The incident underscores the need for stronger safe-haven assets and enhanced CFT measures in DeFi infrastructure.
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