On June 20, the MSUSD stablecoin from the Main Street project lost its peg to the US dollar, with the asset's price dropping significantly below the target of $1.
#PeckShieldAlert ethereum:0x4ba01f22827018b4772cd326c7627fb4956a7c00 has dropped -85% @Main_St_Finance https://t.co/RLnpvBthg0 pic.twitter.com/hF3bEPk14m
— PeckShieldAlert (@PeckShieldAlert) June 20, 2026
The collapse was triggered by a conflict with the reserve verification provider, Accountable, which unilaterally ceased its partnership with Main Street, citing non-compliance with verification standards. Following the suspension of monitoring, the MSUSD price plummeted by over 90%.
The Main Street team described the incident as a technical reporting issue. The developers assert that the assets are fully backed and have allocated $8 million in USDC to support liquidity. The project is currently seeking a new auditor.
Market Reaction and Altura Fund Closure
The incident sparked panic across other DeFi services. The Altura protocol announced the closure of its main vault, valued at $39 million, due to mass withdrawals.
Dear Users,
Over the past 24 hours, we have experienced an unprecedented level of withdrawal requests and have successfully processed more than 8.5 million USDT in instant redemptions.
Given the sustained withdrawal demand and current market sentiment, we have made the…
— Ranveer (@ranveerar89) June 21, 2026
In just one day, users withdrew over $8.5 million in USDT. Altura's CEO, Ranveer Arora, explained that the project had no direct investments in MSUSD. However, both protocols shared the same auditor—Accountable.
The Altura team has begun a gradual return of assets to users. This process will take some time, as part of the funds are tied up in long-term strategies and RWA. Other Altura products continue to operate as usual.
It’s worth noting that in May, the total market capitalization of stablecoins reached a historic high of $323 billion.