A hacking incident at Resolv has led to a theft of $25 million and a crash in its stablecoin, USR, prompting a pause in all protocol functions.
Resolv, a stablecoin issuance platform, suffered a significant security breach, leading to the theft of approximately $25 million and a substantial drop in its dollar-pegged stablecoin, USR.
Following the incident, Resolv Labs announced that they had paused all protocol functions to prevent further exploitation. The attack exploited a vulnerability that enabled the hacker to mint 50 million USR tokens without backing.
"Resolv has experienced an exploit that allowed the attackers to mint 50 million unbacked USR. The team is actively working on recovery," stated Resolv Labs on social media.
The price of USR plummeted to $0.44 amid the chaos, with liquidity issues causing significant market slippage. According to D2 researchers, the attacker initially deposited 100,000 USDC into the USR Counter contract, receiving nearly 50 million USR in return, a result of a flawed smart contract mechanism.
The hacker subsequently converted the stolen tokens into wstUSR and attempted to sell them across various platforms, further aggravating the decline in USR’s market value. D2 experts expressed concerns about how the large USR issuance was authorized based on a relatively small USDC deposit.
“The main question is: how was the requestSwap for 100,000 USDC authorized as 50 million USR through completeSwap? Someone needs to explain what happened between these two stages,” they remarked.
Currently, Resolv’s team is focused on recovering from the breach, with no further details shared publicly about the investigation or recovery efforts. As the average loss from crypto hacks hovers around $25 million, this incident underscores the ongoing vulnerabilities within the DeFi ecosystem.
