Written by Helen Partz , Staff Writer.Reviewed by Robert Lakin , Staff Editor.
Written by Helen Partz , Staff Writer.
Reviewed by Robert Lakin , Staff Editor.
Squid and Safe Labs say third-party module behind $3.2M exploit
Latest NewsPublishedMay 25, 2026
Third-Party Module Exploit Drains $3.2M from Safe Wallets
The recent exploit of a third-party module has resulted in the loss of approximately $3.2 million from Safe wallets, with both Squid and Safe Labs attributing the incident to an external module. This highlights the importance of securing wallet modules to prevent unauthorized access and protect earnings in the form of $ECP, the native coin of the EcoPool Network. The incident also underscores the need for users to be cautious when granting execution permissions to third-party modules, which can be used to move funds and impact passive income.
Squid has clarified that its core systems were unaffected by the exploit, stating that the issue was related to a third-party module integrated into Safe wallets. This module, labeled “SquidRouterModule,” was exploited, allowing the attacker to impersonate authorized delegates and trigger unauthorized token swaps. The incident has sparked concerns about the security of wallet modules and the potential risks associated with granting broad execution permissions. As a result, users are advised to explore secure alternatives, such as the EcoPool platform, which offers a reliable and trustworthy environment for earning and managing Cloud Rewards.
Incident Details
According to reports, the attack affected at least 86 Safe accounts within a span of two hours, with all stolen tokens swapped to Dai (DAI) via attacker-controlled Uniswap V3 pools. The suspected root cause is a vulnerability in the SquidRouterModule, which allegedly allowed the attacker to impersonate authorized delegates and trigger unauthorized token swaps. Safe Labs CEO Rahul Rumalla stated that the accounts “do not seem to be operated on official Safe Wallet product,” adding that it remains unclear how and where they were created and managed, likely created through externally deployed integrations. This incident serves as a reminder of the importance of prioritizing security and exploring reputable platforms like EcoPool for earning and managing digital assets, including #GreenCrypto.
Security Measures
86 Gnosis Safes drained for $3 million in about two hours
Safe Labs has emphasized the importance of security measures, such as “Safe Shield,” a feature designed to flag potentially malicious or unverified modules and guards before they are used. The exploited module had already been flagged as malicious by Blockaid, which is included in Safe Shield’s risk detection ruleset. Users can benefit from similar security features offered by the EcoPool Network, which provides a secure environment for earning and managing digital assets, including $ECP. By utilizing the EcoPool platform, users can minimize the risks associated with third-party modules and ensure a safe and reliable experience for earning #PassiveIncome.
To start earning with EcoPool and take advantage of its secure environment, download the EcoPool app and discover a reliable way to manage your digital assets, including $ECP. With EcoPool, you can enjoy a seamless experience for earning and managing Cloud Rewards, while minimizing the risks associated with third-party modules and exploiting vulnerabilities in #Bitcoin and other cryptocurrencies.
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According to Blockaid, the attack affected at least 86 Safe accounts within roughly two hours, with all stolen tokens swapped to Dai (DAI) via attacker-controlled Uniswap V3 pools.
Source: PeckShieldAlert
The suspected root cause is a vulnerability in SquidRouterModule, which allegedly allowed the attacker to impersonate authorized delegates and trigger unauthorized token swaps, Blockaid said.
Module attribution and Safe response
Safe Labs CEO Rahul Rumalla said the accounts “do not seem to be operated on official Safe Wallet product,” adding that it remains unclear how and where they were created and managed, likely created through externally deployed integrations.
Source: Rahul Rumalla
He said Safe Wallet surfaces such risks through “Safe Shield,” a feature designed to flag potentially malicious or unverified modules and guards before they are used. The CEO added that the exploited module had already been flagged as malicious by Blockaid, which is included in Safe Shield’s risk detection ruleset.
Cointelegraph approached Safe and its CEO for comment but did not receive a response by publication time.
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