SquidRouterModule Exploit Drains $3M from Safe Wallets

Key Facts

Amid ongoing security challenges in the decentralized finance (DeFi) sector, the Squid ecosystem has suffered an exploit targeting the SquidRouterModule. According to reports, nearly $3 million was drained from 86 Safe wallets (formerly Gnosis Safe) due to a vulnerability in this third-party component. The attackers exploited this flaw to execute unauthorized withdrawals within a narrow two-hour window.

The attackers utilized fake Uniswap V3 swaps to exploit the vulnerable router and convert the stolen assets into over 3 million DAI stablecoins. This incident occurs during a sensitive period for the crypto market, as market data indicates increasing pressure on cross-chain liquidity protocols. Compared to previous DeFi exploits, such as the Orbit Chain bridge hack which saw losses exceeding $80 million earlier, this attack remains limited in scale but highlights the risks of relying on third-party components within smart wallet infrastructure.

Investors and Safe wallet users should monitor official updates from the Squid team to ensure the vulnerability is fully patched. Looking at the economic calendar, global inflation data, such as the UK CPI expected on May 20, 2026 (per market calendar), may influence general risk appetite for digital assets. Users are advised to review smart contract permissions linked to their wallets to ensure the safety of remaining funds.

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