Another stablecoin crisis has hit the cryptocurrency market. USR, a stablecoin issued by ResolvLabs, experienced a significant drop in value following a suspected security exploit. According to on-chain data, one address minted 50 million USR using only about 100,000 USDC. This unusual transaction caused a sharp decline in the price of USR.
Following the incident, USR quickly lost 74.2% of its value, falling to $0.257. It later showed a partial recovery, rising to approximately $0.78. At the time of writing, it has fallen by 93% daily, trading at $0.06. The token was originally supposed to be pegged at $1.
The graph shows the decline in USR price.
It was also determined that the attacker began converting the funds obtained into different assets. According to current data, the attacker has purchased approximately $4.55 million worth of ETH so far. Blockchain security firm PeckShield stated that a total of approximately $80 million worth of USR may have been minted.
On the other hand, Aave, one of the leading protocols in the DeFi ecosystem, also issued a statement on the matter. The Aave CEO argued that despite the USR depeg process, the protocol has no exposure to ResolvLabs USR.
*This is not investment advice.