StablR Hack Triggers EURR, USDR Depegging

Stablecoin issuer StablR suffered a hack that sent the prices of its stablecoins away from their fiat pegs.

Cointelegraph reported on May 24 that blockchain security firm Blockaid detected an ongoing exploit involving StablR’s issuance system. Losses have been estimated at about $2.8 million so far.

Blockaid wrote that the private key of one of the minting multisig administrators appears to have been compromised. The system was vulnerable because transactions could be executed with approval from only one of three signers.

The attacker then took administrative control, added a new administrator account and replaced the existing administrators. After that, the attacker minted about 8.35 million USDR and 4.5 million EURR, causing the stablecoins to depeg.

The attacker swapped about $10.4 million of the newly minted tokens for 1,115 Ether on decentralized exchanges.

StablR’s euro-linked stablecoin EURR was trading at about $0.90, down roughly 22%. Under normal conditions, EURR trades at about $1.15.

Blockaid said the incident was not caused by a smart-contract bug. Instead, it stemmed from failures in key management and governance.