The company added that affected buyers will instead be able to claim USDC refunds starting Sept. 14 at 12:00 UTC, while SILV held before the incident won't be touched.
Dominion separately said liquidity-provider positions "should not be affected" and that it's working with SEAL 911 and the Solana Incident Response Network on the investigation.
Dominion, the issuer behind Solana-based tokenized silver asset SILV, pulled liquidity and began trying to restore the token's peg on Friday, Sept. 11, after discovering that a number of its wallets had been compromised.
- The incident began at about 01:00 UTC, according to Dominion founder Mark Tormey, who said in an X post on Friday that the team identified the problem three hours later and moved to secure the affected wallets.
Mark Tormey
- The company hasn'y publicly disclosed how the wallets were compromised, how many were affected or how much money, if any, was taken.
Dominion said it was working with SEAL 911, Security Alliance's round-the-clock crypto incident-response service, to investigate the breach.
One token was supposed to equal one ounce
SILV, Dominion's Solana token launched publicly in August, is designed to give holders economic exposure to one troy ounce of physical silver for every token.
Dominion says the backing consists of investment-grade silver held in allocated custody at a vault in Fort Worth, Texas, with individual bars segregated by serial number.
Its whitepaper says SILV supply is minted only against confirmed metal reserves, although holders do not receive legal title to any particular bar or ounce.
- SILV traded as low as about $62.3, sliding over 60% on the day, per data from CoinGecko.
Dominion said it planned to add liquidity and begin restoring the peg "within the next few hours," while warning users not to trade SILV until it confirmed that process was underway.
Sunrise, a Solana platform providing markets for tokenized real-world assets, also removed SILV from its interface and advised users to temporarily avoid interacting with the token contract, while stressing that the incident involved Dominion rather than Sunrise's own infrastructure.
Second-largest tokenized silver globally
The incident might be relatively small in dollar terms but it hits one of the larger direct attempts to put physical silver on-chain.
CoinGecko currently values SILV at roughly $6.2 million, making it the second-largest direct tokenized-silver asset it tracks globally, behind Kinesis Silver's roughly $250 million KAG, and the largest Solana-issued asset in CoinGecko's tokenized-silver category.
SILV has about 93,000 tokens in circulation.
An auditor had already flagged wallet concentration
The breach also puts fresh attention on Dominion's wallet controls as SolidProof, the security firm that audited Dominion's Solana program before launch, found no critical or high-severity flaws in the program logic but specifically warned about concentrated administrative authority.
- On the deployment it reviewed, SolidProof said the upgrade authority, administrator, seizure delegate and freeze authority were initially controlled by the same wallet, meaning a single-key compromise could amount to a "complete takeover."
- Dominion subsequently moved toward multisignature controls, but SolidProof's Aug. 11 re-audit said the same five people controlled two separate three-of-five multisig vaults, meaning three compromised member keys could still reach both.
There is currently no evidence that the configuration identified by SolidProof caused Friday's breach and Dominion hasn't said which wallets or keys were compromised.
The Coinformer reached out to Dominion for comments and will update the story if the firm responds.