Squid Router, financially backed by Ripple, came forward to address rumors regarding an alleged multi-million dollar $3 million exploit on its protocol. The initial alert, which went viral on social media, was clarified by security firms such as PeckShield and Blockaid, confirming that the attack actually affected a poorly programmed third-party module and not Squid Router’s official infrastructure.
This incident is unrelated to Squid’s core protocol and contracts. All Squid users and integrators are unaffected and no action is needed.
A third-party Gnosis Safe module was exploited today across Base and Ethereum, resulting in approximately $3.2M in losses. The vulnerable… https://t.co/I3gGmdBvE9
— squid (@squidrouter) May 25, 2026
The financial panic was triggered because the vulnerable contract of an external smart wallet was named “SquidRouterModule“. An attacker exploited a flaw in that code to impersonate a trusted delegate, draining 3.07 million DAI from 86 addresses across Ethereum and Base. Squid Router’s co-founder, known as “fig“, clarified that their original contract (0xce16…) has a completely different and secure architecture, debunking the rumors of a potential breach.
After clearing up the misunderstanding, Squid Router developers worked at full speed to ensure that funds and operations remained intact. The DeFi market breathes a sigh of relief while users are advised to verify third-party smart contract interactions.
Source: https://x.com/squidrouter/status/2058890710611276238
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