Dominion Market's $SILV Treasury Compromised, $238K Lost
Dominion Market's Solana silver token $SILV experienced a treasury multisig compromise, resulting in a loss of $238,000. The attacker exploited a 3-of-5 key mechanism to deplete the treasury and manipulate token liquidity.
The incident involved a compromise of the treasury multisig for Dominion Market’s Solana silver token $SILV. An attacker gained access using a 3-of-5 key mechanism, allowing them to empty the treasury and withdraw SILV from loans. This led to the dumping of approximately 46,909 tokens into decentralized exchange pools, which caused the token's peg to break and resulted in a realized loss of about $238,000.
In response to the incident, the Dominion team took several measures to mitigate the damage. They pulled liquidity from the affected pools, rotated their hardware to enhance security, and froze tokens that were purchased during the incident window. Additionally, they announced plans to issue refunds in USDC and work on a strategy to repeg the token.