Dominion Market confirmed a security breach of its multisig wallets that occurred near 01:00 UTC on Friday, September 11. The incident pushed SILV, the platform's Solana-based token pegged to physical silver, below its 1:1 backing value.
The platform detected unusual activity approximately three hours after the compromise began and moved to contain it. According to founder Mark, Dominion pulled liquidity, secured the affected wallets, and deployed fresh hardware devices to restore full system control.
Trading Halted and Tokens Frozen
Trading has been paused while Dominion confirms its systems are secure. Tokens purchased between 01:00 UTC and 14:00 UTC on Friday, September 11 will be removed from wallets. Balances held before the exploit window began remain unaffected.
The breach created an opportunity for opportunistic purchases as SILV traded significantly below the value of its physical silver backing during the compromised window.
Refund Process and Investigation
Dominion opened a refund claims process for affected users beginning Monday, September 14 at 12:00 UTC. The company will issue USDC refunds verified through onchain data, citing closed silver markets over the weekend as the reason for the delay. Affected users do not need to submit information until the official claims form launches.
Dominion is working with the Solana Incident Response Network and SEAL 911 to trace and analyze the incident. Both organizations focus on tracking exploits across Solana-based protocols.
Security and Scam Warnings
Dominion warned its community about potential follow-up scams tied to the incident. The company stated it will never contact holders directly about refunds through private messages. Any account offering early refunds before the official Monday window should be treated as fraudulent, with official updates coming only through verified accounts.
Path Forward
Dominion's priority is restoring the SILV peg to physical silver backing. The platform is working to add liquidity ahead of a full repeg, which the team said is coming soon. Holders have been asked to avoid trading SILV until an official repeg announcement is made.
