StablR exploit breaks USDR and EURR pegs after private key compromise

An ongoing exploit against the stablecoin issuer StablR has caused its euro and dollar pegged tokens to lose their value, with approximately $2.8 million extracted so far, according to blockchain security firm Blockaid.

The incident, detected on Sunday, stems from a compromised private key linked to one owner of the company’s minting multisignature account. Blockaid stated that the account used a weak 1-of-3 threshold, meaning a single compromised key was sufficient to control minting access. The attacker added themselves as an owner, removed the two other legitimate owners, and minted 8.35 million USDR and 4.5 million EURR tokens.

The sudden creation of new supply pushed both stablecoins away from their intended pegs. The attacker then swapped approximately $10.4 million in face value of the minted tokens through decentralized exchanges. However, due to thin liquidity, the attacker realized only 1,115 ETH, worth about $2.8 million.

“This is not a smart contract bug, it’s a key management and governance failure,” Blockaid said.

Market data showed the peg break during Sunday trading. CoinGecko listed EURR near $0.88, down more than 21 percent over 24 hours, while CoinMarketCap...