Dominion Market’s $SILV token has fallen more than 70% following an exploit that compromised several of the issuer’s wallets, sending the token far below its intended 1:1 backing with physical silver.
Dominion reported that the incident began at approximately 01:00 UTC on September 11. The team identified the compromise at 04:00 UTC, pulled liquidity, secured the affected wallets, and replaced compromised wallets with new devices and hardware wallets.
According to a Telegram message shared by Founder Mark Tormey, the attacker dumped about $2 million worth of $SILV and made roughly $200,000. He added that the team caught the attacker while they attempted to remove existing signers and add their own wallets to the mint function.
Dominion has since said it will identify every affected wallet, confirm that its security remains locked down, and work to restore the token's 1:1 silver peg.
$SILV Touches $0.40
The exploit triggered a sharp sell-off in $SILV, with the token going as low as $0.40 early Friday morning. The token currently trades at just above $19, while silver trades at around $64 per ounce.
Sunrise, which supported $SILV's launch and liquidity on Solana, confirmed that the incident involved Dominion's protocol rather than Sunrise infrastructure.
The platform advised users not to interact with the $SILV contract and removed the $SILV market from its interface as a precaution. Sunrise said it remains in contact with Dominion and its security partners. Dominion also warned users to avoid trading $SILV until it confirms that the repeg has begun.
A Test for Solana’s Tokenized Commodity Market
The incident comes less than a month after Dominion launched $SILV on August 13 as a tokenized representation of physical silver. Dominion said each token represented 1 ounce of silver and reported holding 150,000 ounces of physical silver, worth roughly $9.7 million at launch. Bureau Veritas conducted its latest audit in June 2026.
The exploit also highlights the relatively small size of Solana's tokenized commodity market. RWA.xyz data shows just $25.3 million in tokenized commodities on Solana, representing 0.51% of a market dominated by Ethereum, which holds an almost 95% share.
Dominion Freezes Recently Acquired SILV
Dominion has now temporarily frozen $SILV acquired after 01:00 UTC, when it says the incident began.
The issuer said the move aims to protect long-term holders, provide greater market certainty, and create a path toward restoring orderly trading and the silver peg.
The issuer said it will remove all $SILV bought between 01:00 UTC and 14:00 UTC on Friday, September 11, from users' wallets.
The decision will not affect users who held $SILV before 01:00 UTC. Dominion said the measure aims to protect those holders by preventing compromised tokens from remaining in circulation and weakening the silver backing available to legitimate holders.
Dominion acknowledged that some users bought $SILV in good faith during the affected period. Those users will receive a route to recover their funds in $USDC. The refund process will open at 12:00 UTC on Monday, September 14.
The issuer said Monday represents the earliest practical date for the refunds because silver markets remain closed over the weekend.
The investigation continues with the Solana Incident Response Network (SIRN) and SEAL 911, while Dominion works to re-peg $SILV to the value of its underlying silver as soon as possible.
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