StablR Suspends USDR and EURR Operations Following $13.5 Million Cyberattack
StablR freezes USDR and EURR after attacker mints $13.5 million in unbacked tokens
Image: Coindesk
StablR, a Malta-based issuer of stablecoins, has halted operations for its USDR and EURR tokens after a cyberattack exploited a multisig wallet vulnerability, leading to the minting of $13.5 million in unbacked tokens. The tokens are now under-collateralized, prompting regulatory notifications and investigations.
- 01The cyberattack exploited a weakness in a 1-of-3 multisig wallet, allowing attackers to mint $13.5 million in unbacked tokens.
- 02StablR's USDR and EURR tokens briefly lost up to 50% of their peg, with current values at $0.994 and $0.548 respectively.
- 03The company is notifying the Malta Financial Services Authority and involving external cybersecurity firms in the investigation.
- 04The circulating supply of USDR and EURR is not fully backed at the required 1:1 ratio as per the European Union’s Markets in Crypto-Assets (MiCA) regulation.
- 05The attackers netted approximately $2.8 million after offloading the minted tokens due to thin liquidity on decentralized exchanges.
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StablR, a stablecoin issuer based in Malta, has suspended operations for its USDR and EURR tokens following a significant cyberattack that exploited a vulnerability in its multisig wallet setup. This breach allowed attackers to mint $13.5 million in unbacked tokens, compromising the collateralization required under the European Union’s Markets in Crypto-Assets (MiCA) regulation. The tokens experienced a dramatic devaluation, losing up to 50% of their peg, with USDR currently valued at $0.994 and EURR at $0.548. The company initiated an investigation after detecting irregularities and has frozen all trading, deposits, and withdrawals for the affected tokens. StablR plans to notify the Malta Financial Services Authority and is collaborating with external cybersecurity experts to address the incident. The attackers managed to exploit the wallet by compromising a single key, allowing them to mint approximately 8.35 million USDR and 4.5 million EURR, ultimately netting around $2.8 million from the operation.
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The suspension of USDR and EURR operations affects users and investors relying on these stablecoins for transactions and trading.
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