The Solana tokenized silver project Dominion has announced its closure. The team stated that a security incident in September led to a large amount of SILV being compromised and sold off, resulting in a collapse of liquidity, operational capital losses, and damage to market structure. The capital required for reconstruction has exceeded the remaining resources.

The project has allocated most of the remaining liquid funds for refunds. Eligible SILV holders before the attack can exit at $63 per coin. The claims window opened on September 28 and was settled in USDC at the same price, provided the holders maintained their positions before the attack, and closed on October 5. The price of SILV was approximately $63 the night before the attack.

SILV was designed to be backed 1:1 by physical silver, with each coin corresponding to one troy ounce. The treasury requires 3 out of 5 signatures for access. On September 11, the attacker controlled 3 keys, emptied the treasury, and withdrew more SILV from the borrowed positions in the stolen wallet.

The attacker sold approximately 46,909 SILV on a thinly traded decentralized exchange, about half of the existing supply. The nominal value before the attack was around $3 million, and the final cash-out was about $238,000. The team changed the signers before 06:19 UTC, and at 10:51 UTC, the attacker acted again using a wallet that had not been covered by the rotation.

The team determined that the cause was social engineering disguised as investors and lurking malware, which drained both personal and project wallets, while minting rights were not taken away. SILV purchased between 01:00 and 14:00 UTC that day was removed from wallets, and the project froze 2,819 accounts, accounting for about 33% of the supply. The team contacted the Solana incident response network and SEAL 911, and reported to IC3.

The buyers were pre-attack holders exiting at $63, while the sellers were the project team that had no operational funds left. The incident was driven by controlled multi-signature, with funds moving from the market-making inventory to refunds. Beneficiaries were old holders who could claim based on snapshots, while those under pressure were addresses that bought during the attack window, thin pool market makers, and traders still treating on-chain silver as redeemable inventory.

Source: Public Information