StablR Stablecoin, Euro and Dollar Pegs Simultaneously Collapse... "Trusted Reserves, But Betrayed"

▲ Stablecoin, Euro (EUR), Dollar (USD)/AI Generated Image

As a result of an ongoing exploit at StablR, Euro and dollar-based stablecoins have lost their pegs. Blockchain security firm Blockaid stated that the exploit detection system at StablR's issuer confirmed an ongoing attack, and approximately $2.8 million has been siphoned off to date.

Cointelegraph reported on May 24 (local time), citing Blockaid, that the presumed cause of this attack was the compromise of a private key belonging to one of the owners of a minting multisig account. This account used a 1-of-3 standard, meaning only one out of three owners was required for approval. Blockaid explained that the attacker added themselves as an owner, replaced another owner, 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 amount was limited to 1,115 ETH (approximately $2.8 million). Blockaid stated, “This was not a smart contract bug, but a failure in 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 fell to $0.88. The decline was calculated at 23%. The dollar stablecoin USDR, with a market capitalization of $11 million, plummeted by 30% to $0.70 amidst the ongoing incident on Sunday morning.

StablR issues regulated, collateralized stablecoins pegged to the Euro and US 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. Over the past two months, exploits related to private keys or admin keys have also occurred at Volo Vault, Wasabi Perps, Echo Bridge, and Polymarket. The Bitcoin (BTC) cross-chain bridge Map Protocol suffered a smart contract bug attack on May 21, allowing the attacker to mint 1,000 trillion MAPO tokens.

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