StablR Halts USDR and EURR Services Following $13.5 Million Token Minting Attack

StablR, a stablecoin issuer based in Malta, has suspended its USDR and EURR tokens following a significant cyberattack that allowed attackers to mint $13.5 million in unbacked tokens. The exploit, which violated the mandated 1:1 collateralization rule under the EU’s Markets in Crypto-Assets (MiCA) regulation, was linked to a vulnerability in a 1-of-3 multisig wallet.

The breach resulted in USDR losing nearly half of its peg, dropping to $0.994, while EURR fell to $0.548. StablR reported that the attackers profited approximately $2.8 million by selling the minted tokens on decentralized exchanges, where liquidity was thin.

Following the incident, StablR has frozen all operations related to these stablecoins and has advised exchanges to halt trading, deposits, and withdrawals. The company is currently conducting an internal investigation and has alerted the Malta Financial Services Authority, as required by EU regulations.

Onchain investigator ZachXBT identified the exploit over the weekend, revealing that two contracts associated with StablR’s stablecoins were compromised. The company acknowledged that the current supply of USDR and EURR is not fully backed as required by law.

CEO Gijs op de Weegh assured stakeholders that the company is committed to transparency during the investigation. Additionally, external cybersecurity firms and law enforcement agencies are collaborating to address the breach.