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StablR Stablecoin Depeg after $2.8 Million Exploit

Stablecoin StablR Euro (EURR) and StablR USD (USDR) lost their peg on Ethereum on May 24 after an exploit in the project's minting contract, which allowed the attacker to successfully steal around $2.8 million.

Blockchain security company Blockaid detected this attack and confirmed that the breach occurred due to private key compromise, not because of a flaw in the StablR smart contract.

How the Attacker Took Control of StablR

The multisig minting that manages the issuance of StablR tokens only requires one of three authorized signatures to act. The 1-of-3 threshold means that a compromised private key is enough to fully control the contract.

The attacker added their own address as the owner and removed two legitimate signers. They then minted 8.35 million USDR and 4.5 million EURR, with a total value of approximately $10.4 million at peg.

Blockaid explained this sequence of events in a follow-up post on X:

“This is not a smart contract bug – it’s a failure in key management and governance.”

Thin liquidity on decentralized exchanges (DEX) greatly limits the results the attacker can achieve.

Converting the $10.4 million of newly minted tokens into a shallow pool only yielded about 1,115 ETH, worth roughly $2.8 million.

EURR dropped about 20% in the observed Ethereum liquidity, and USDR also lost its peg against the dollar due to heavy selling pressure exceeding the volume in the available pool.

Common Governance Blind Spots Recur

This incident recalls previous stablecoin attacks where illegal minting triggered rapid peg depegging.

More broadly, such events follow a trend of DeFi exploits caused by ongoing private key compromises, which have also contributed to record losses in crypto asset thefts over recent years.

A similar breach case involving the stablecoin Resolv in 2026 also used a nearly identical mechanism, where a single insecure private key enabled large-scale token minting.

StablR holds an Electronic Money Institution (EMI) license from Malta’s financial regulator. The company operates in accordance with the EU’s Markets in Crypto-Assets (MiCA) regulations.

StablR received strategic investment from Tether at the end of 2024. The role of regulatory and financial relationships in the recovery response has not been disclosed to date.