- Attackers drained nearly $2.8M after minting fake USDR and EURR tokens.
- USDR and EURR sharply depegged after exploit-driven token dumping on Ethereum.
- The exploit exposed governance and wallet security risks across DeFi platforms.
StablR’s USDR and EURR stablecoins lost their peg after attackers exploited the platform’s minting system and extracted millions of dollars in value. Blockchain security firms reported that the incident stemmed from a compromised multisig key, allowing unauthorized token minting on Ethereum.
The exploit triggered sharp price declines across both stablecoins and renewed concerns about weak governance controls in decentralized finance.
Exploit Triggered by Compromised Multisig Key
Blockchain security company Blockaid identified the exploit early Sunday after detecting suspicious minting activity tied to StablR’s infrastructure. According to investigators, attackers gained control of a weak 1-of-3 multisignature wallet connected to the platform’s minting operations.
The attacker reportedly added a new wallet as an owner and removed the existing signers. After securing control, the exploiter minted nearly 8.35 million USDR tokens and 4.5 million EURR tokens on Ethereum.
Security researchers stated that the incident did not involve a smart contract vulnerability. Instead, the breach resulted from poor operational security and weak governance procedures surrounding key management.
The newly minted tokens flooded decentralized exchanges within hours. However, limited liquidity prevented the attacker from cashing out the full face value of the assets.
Reports showed the exploiter swapped roughly $10.4 million worth of tokens for about 1,115 ETH, valued near $2.8 million at the time of the attack.
🚨Community Alert
Blockaid's exploit detection system has identified an ongoing exploit on @StablREuro.~$2.8M extracted so far.
Both tokens are depegged: 0x50753cfaf86c094925bf976f218d043f8791e408 (StablR Euro)
and
0x7b43e3875440b44613dc3bc08e7763e6da63c8f8 (StablR USD) on…— Blockaid (@blockaid_) May 24, 2026
Stablecoins Lose Peg as Market Confidence Falls
The exploit caused immediate instability for both StablR stablecoins. EURR, the company’s euro-backed token, dropped nearly 23% from its intended value. The token reportedly fell from around $1.15 to nearly $0.88 during the sell-off.
USDR also recorded heavy losses after the exploit became public. The dollar-pegged token declined nearly 30%, falling to approximately $0.70 on major decentralized exchanges.
Blockchain investigator ZachXBT estimated the total impact near $10 million, including the unauthorized minting activity. Both stablecoins remained below their intended peg values.
The incident adds to a growing list of crypto security breaches recorded in May 2026. Several decentralized finance projects have suffered attacks linked to compromised administrator credentials and weak internal controls.
StablR previously positioned itself as a regulated stablecoin issuer backed by segregated reserves held at financial institutions.
