The developers of the cross-chain bridge Squid have denied any connection to the SquidRouterModule contract, which was hacked for approximately $3 million. The security incident was reported by Blockaid experts.
šØ Blockaid detected an ongoing exploit targeting the SquidRouterModule on Ethereum and Base.
ā Blockaid (@blockaid_) May 25, 2026
86 Gnosis Safes drained for ~$3M in ~2 hours.
All stolen tokens swapped to DAI via attacker-controlled Uniswap V3 pools.
More details in š§µ
According to their report, the attack affected 86 wallets across the Ethereum and Base networks. PeckShieldAlert also reported on the incident, stating that the attacker funded their address with 2.1 ETH via Tornado Cash and exchanged the stolen funds for 3 million DAI.
Squid clarified that hackers exploited a third-party Gnosis Safe module. The vulnerable contract is registered on Basescan as SquidRouterModule, but it is not associated with the main project. It is a third-party product in the form of a smart wallet that chose to integrate with Squid.
This incident is unrelated to Squidās core protocol and contracts. All Squid users and integrators are unaffected and no action is needed.
ā squid (@squidrouter) May 25, 2026
A third-party Gnosis Safe module was exploited today across Base and Ethereum, resulting in approximately $3.2M in losses. The vulnerableā¦ https://t.co/I3gGmdBvE9
"The attack was successful because the third-party module accepted a provided fixed string as a message security confirmation. If this is transmitted, it allows for a call of arbitrary data and the theft of funds," the developers stated.
Users of Safes had added the vulnerable contract as a trusted module, granting it the ability to spend any tokens without a signature. Squid's own router (0xce16F69375520ab01377ce7B88f5BA8C48F8D666) has a different architecture and was not affected.
"This contract bears our name, but it is not our code," Squid concluded.
Investments
Just days before the incident, Squid announced it had raised $6 million. The project is a cross-chain infrastructure platform that initially developed within the Axelar ecosystem.
We are proud to announce that Squid has raised $6M in a funding round led by North Island Ventures and backed by strategic investors!
ā squid (@squidrouter) May 22, 2026
Our new chapter has begun, with more news coming soon. Today we celebrate and say thank you. CHEERS š« pic.twitter.com/4xzUCt8eEa
North Island Ventures led the funding round, which included participation from Ripple, Dialectic, and Borderless.
In total, the project has raised $13.5 millionā$3.5 million in 2023 and $4 million in 2024.
Since its launch in 2023, the platform has processed over 4 million transactions totaling more than $6 billion. It has served 1 million users through its app and integrations with partners.
Squid generates revenue through corporate services and plans to introduce transaction fees. Existing tools allow for asset transfers between various blockchains such as Bitcoin, Ethereum, Solana, Cosmos, and XRP Ledger.
The developers of the latter are official partners of Squid in building bridges, managing a validator in the network, and participating in project governance.
As a reminder, in April, an unknown individual exploited a vulnerability in the smart contract of the cross-chain bridge Hyperbridge, gained administrator rights, and issued 1 billion DOT.