Bitcoin shows a bullish technical trend as a third-party module called SquidRouterModule hit Safe wallets. Attackers took about $3.2 million from 86 accounts on Ethereum and Base in two hours. Squid and Safe Labs said the issue did not affect Squid’s core protocol. Attackers swapped stolen tokens to Dai through Uniswap V3 pools they controlled.<\/p>\n
Safe, formerly Gnosis Safe, is a multi-signature wallet on several networks. It needs multiple users to approve a transaction before it runs. This adds strong security. It stops one person from moving funds alone. Users can add optional modules to Safe wallets. These are smart contracts that let approved code act for the wallet.<\/p>\n
The use of third-party modules in crypto wallets has raised concerns. Similar incidents have shown that external integrations can create security risks.<\/p>\n
Blockchain security firm Blockaid reported the incident on Monday. They found a contract called “SquidRouterModule” was the source of the exploit. This name caused confusion at first. It made some think the cross-chain protocol Squid was involved. Squid quickly clarified on X. They said the issue was not related to their core protocol. “A third-party SquidRouterModule was exploited, not Squid’s Router contract,” Squid said. They noted the contract shares their name but not their code.<\/p>\n
The incident shows the risks of third-party modules in smart account systems. When a module gets broad execution permissions, it can move funds if hacked. Blockaid’s analysis showed how fast the attack was. Attackers hit at least 86 Safe accounts in about two hours. All stolen tokens were turned into Dai through Uniswap V3 pools run by the attackers.<\/p>\n\t\t