Resolv Labs' stablecoin depegs after an exploit allows an attacker to mint millions of tokens and extract significant funds.
An attacker exploited the Resolv USR stablecoin, minting 50 million tokens by depositing $100,000 worth of USDC, according to reports from CoinTelegraph and crypto security firm PeckShield.
Resolv Labs confirmed the incident on X, stating that the attacker also minted an additional 30 million USR tokens, prompting the team to pause all protocol functions to halt further exploitation.
Attacker's Actions and Cashout
The attacker transferred the newly minted tokens to various crypto protocols, swapping them for USDC and USDT before converting them to Ether, as detailed by crypto fund D2 Finance.
D2 Finance reported that the attacker extracted around $25 million amid the depeg, with USR trading as low as 50 cents on some exchanges due to worsened liquidity and slippage.
Currently, USR is trading at approximately 87 cents, down from its intended $1 peg, and it briefly dropped to 2.5 cents on Curve Finance's USR/USDC pool.
This exploit occurred as crypto hacks declined in February, with losses totaling $49 million compared to $385 million in January, according to CoinTelegraph sources.
