European stablecoin issuer StablR suspended minting and redemption services for its USDR and EURR tokens after a cyberattack left the assets without sufficient collateral, according to a company statement.
Onchain researcher ZachXBT publicly flagged the exploit over the weekend, posting that two contracts tied to StablR’s USDR and EURR stablecoins appeared compromised.
The Malta-based firm said it detected “irregularities” in its systems after internal alerts triggered an investigation.
StablR froze token trading and asked exchanges to stop trading, deposits, and withdrawals of both stablecoins while the company investigates the breach. USDR currently has a market cap of $20 million, while EURR has a market cap of $10 million, according to data from CoinGecko.
StablR acknowledged that the circulating supply of USDR and EURR is “currently not fully backed at the 1:1 ratio” as required by the European Union’s Markets in Cryptoassets (MiCA) regulation.
The company said it plans to notify Malta’s financial regulator, the Malta Financial Services Authority, in accordance with the EU Digital Operational Resilience Act and MiCA reporting rules. External cybersecurity companies and law enforcement agencies also participate.
Blockchain security firm GoPlus Security said the attack may be due to a weakness in the configuration of StablR’s Ethereum multi-signature wallet.
The minting wallet was configured with a multi-signature threshold of 1 in 3, according to GoPlus. Any of the three authorized owners could approve transactions on their own.
Researchers say the attackers compromised a single key, added themselves as administrators, and removed legitimate signers. They then minted approximately 8.35 million USDR and 4.5 million EURR, around $13.5 million in unbacked tokens with peg.
Low liquidity on decentralized exchanges meant that attackers netted approximately $2.8 million after dumping the newly minted supply.
StablR tokens briefly lost up to 50% of their peg before starting to recover. The USDR is now at $0.994, while the EURR is at $0.548, well below the euro’s current value of $1.16.
Chief Executive Gijs op de Weegh said the company is acting “with complete transparency” as the investigation continues.
