Resolv Labs Stablecoin Depegs, Plunges 74% After $25M Exploit
Resolv Labs’ USR stablecoin lost over 74% of its value after an attacker exploited a compromised private key to mint $80 million in uncollateralized USR tokens. The attacker quickly converted the new USR into wstUSR, then swapped it for other stablecoins and Ethereum, extracting about $25 million. The exploit was enabled by insecure off-chain signing with a privileged key and no contract-imposed minting limit. In response, Resolv Labs paused all protocol functions, burned $9 million in USR, and is cooperating with law enforcement to trace the attackers. Redemptions for pre-incident USR are planned for allowlisted users. The incident follows recent DeFi security breaches involving protocols like Step Finance and Moonwell, highlighting continuing security challenges in decentralized finance.
