StablR's stablecoins EURR and USDR lost their peg after a hack resulted in a theft of $2.8 million, raising concerns over security practices.
StablR, the issuer of the EURR and USDR stablecoins, has experienced a significant security breach, resulting in a loss of at least $2.8 million, as reported by Blockaid.
According to an alert from Blockaid, an exploit was detected affecting StablR’s operations, leading to both stablecoins losing their pegs. At present, the EURR is trading at $0.93, down 20% from its intended value, while USDR sits at $0.97, a 3% decline.
On-chain investigator ZachXBT has elaborated on the attack, stating that the hacker used the CCTP cross-chain bridge from the Noble platform to facilitate the breach. Initial investigations hint that the hacker compromised a private key belonging to one of the multi-signature holders responsible for the coin minting process. This vulnerability arose from a low threshold requirement of only one out of three signatures needed to authorize actions, enabling the attacker to assume full control.
- The attacker manipulated the ownership by adding themselves and removing two legitimate owners.
- They minted a total of 8.35 million USDR and 4.5 million EURR.
These newly minted coins, valued around $10.4 million, were quickly exchanged on decentralized platforms, resulting in the hacker withdrawing approximately $2.8 million in Ethereum.
Blockaid's specialists emphasized that the issue stemmed from inadequate key management and governance rather than a flaw in the smart contract itself.
Despite the seriousness of the breach, the StablR team reportedly delayed their response for several hours. The current market cap for EURR stands at $10.9 million, while USDR approaches $20.7 million. This incident is part of a troubling trend in the crypto space, as May has already seen a dozen attacks on various crypto projects, following an unprecedented surge of over 20 hacks in April alone.
