StablR freezes USDR and EURR after attacker mints $13.5 million in unbacked tokens
The breach, linked to a 1-of-3 multisig wallet weakness, allowed attackers to compromise a key and mint $13.5 million in unbacked tokens, netting them $2.8 million.
What to know:
- StablR suspended USDR/EURR operations after a cyberattack. The tokens are now under-collateralized and don’t meet the 1:1 backing required by MiCA.
- The breach, linked to a 1-of-3 multisig wallet weakness, allowed attackers to compromise a key and mint $13.5M in unbacked tokens, netting them $2.8 million.
- Following the breach, the tokens briefly lost up to 50% of their peg; USDR is at $0.994 and EURR is significantly lower at $0.548.
The Malta-based firm said it detected “irregularities” in its systems after internal alerts triggered an investigation.
StablR froze token operations and asked exchanges to halt trading, deposits and withdrawals for both stablecoins while the company investigates the breach. USDR currently has a $20 million market capitalization, while EURR has a $10 million market cap, according to CoinGecko data.
StablR acknowledged that the circulating supply of USDR and EURR is “currently not fully backed at the 1:1 ratio” as required under the European Union’s Markets in Crypto-Assets (MiCA) regulation.
The company said it plans to notify Malta’s financial regulator, the Malta Financial Services Authority, under the EU’s Digital Operational Resilience Act and MiCA reporting rules. External cybersecurity firms and law enforcement agencies are also involved.
