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Squid Clarifies Security Incident: Vulnerability Originated from Third-Party Safe Module, Core Protocol Unaffected

AirdropBlackHole
Cross-chain liquidity protocol Squid issued a statement regarding the approximately $3.2 million security incident that occurred today, stating that the attack was unrelated to the Squid core protocol and contracts. All Squid users and integrators were not affected and do not need to take any action. Squid indicated that the exploited vulnerability was in a third-party Gnosis Safe module, which is deployed on the Base and Ethereum networks and verified on Basescan as 'SquidRouterModule.' However, this contract was neither developed, deployed, nor operated by Squid, nor is it an official Squid Router contract, but rather a third-party smart wallet product that integrates protocols like Squid. The attack stemmed from a serious validation flaw in the module: the contract used a fixed string provided by the caller as the basis for validating a 'secure message,' and this string could be directly obtained from the verified contract code, allowing attackers to execute arbitrary calldata arrays and steal funds.
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