StablR freezes USDR and EURR after attacker mints $13.5 million in unbacked tokens
StablR has frozen trading and transfers for its USDR and EURR stablecoins following a security breach that allowed an attacker to mint $13.5 million worth of unbacked tokens. The exploit occurred on May 26, enabling the malicious actor to create new tokens without the corresponding reserve assets that typically back stablecoin issuance. StablR confirmed the incident and immediately suspended all operations for both affected tokens to prevent further unauthorized minting.
The attack highlights ongoing vulnerabilities in stablecoin infrastructure, particularly around smart contract security and minting mechanisms. StablR's USDR and EURR are backed by traditional assets including cash and government bonds, with the company previously marketing its robust reserve management and regulatory compliance. The unauthorized token creation effectively diluted the backing ratio, as new tokens entered circulation without equivalent reserves being deposited.
The incident adds to growing concerns about stablecoin security following similar exploits across the decentralized finance sector. While major stablecoins like USDC and USDT have maintained stability, smaller issuers face heightened scrutiny over their technical safeguards and reserve management practices. The freeze affects users holding either token, though StablR has not disclosed the timeline for restoration of normal operations.
Market participants will be watching for StablR's remediation plan and whether the company can restore full backing for all circulating tokens. Regulatory authorities may also examine the incident as part of broader stablecoin oversight discussions.
Source: CoinDesk
