to leave a comment.
▲ Stablecoin, Euro (EUR), Dollar (USD)/AI Generated Image
Euro and dollar-based stablecoins have lost their pegs in the wake of an ongoing exploit at StablR. Blockchain security firm Blockaid stated that their exploit detection system at StablR's issuer confirmed an ongoing attack, with approximately $2.8 million having been siphoned off so far.
Citing Blockaid, Cointelegraph reported on May 24 (local time) that the presumed cause of this attack was the compromise of a private key belonging to one owner of a minting multisig account. This account used a 1-of-3 standard, meaning it only required approval from one of three owners to operate. Blockaid explained that the attacker added themselves as an owner, replaced other owners, and then minted 8.35 million USDR and 4.5 million EURR.
The attacker exchanged the minted tokens on decentralized exchanges. Although the value of these tokens was approximately $10.4 million, due to thin liquidity, the actual exchange amounted to only 1,115 ETH (Ethereum, ETH), worth about $2.8 million. Blockaid stated, “This was not a smart contract bug, but a failure of key management and governance.”
StablR's Euro stablecoin, EURR, with a market capitalization of $14 million, lost its $1.15 peg in the Euro-dollar market and dropped to $0.88. The decline was tallied at 23%. The dollar stablecoin USDR, with a market capitalization of $11 million, plummeted 30% to $0.70 amidst the ongoing incident on Sunday morning.
StablR issues regulated, collateral-backed stablecoins pegged to the Euro and Dollar. It has stated that reserves are held in segregated accounts with major institutions and has emphasized proof of reserves, regulatory compliance, and availability on Ethereum and Solana (SOL). Tether, the world's largest stablecoin issuer, invested in StablR in December 2024.
As of the time this incident was reported, no related updates had been posted on StablR's X (formerly Twitter) account. In the past two months, exploits related to private keys or admin keys have also occurred at Volo Vault, Wasabi Perps, Echo Bridge, and Polymarket. On May 21, Bitcoin (Bitcoin, BTC) cross-chain bridge Map Protocol suffered a smart contract bug attack, allowing the attacker to mint 1,000 trillion MAPO tokens.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
Newsletter
Get key news delivered to your email every morning
to leave a comment.