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Resolv Labs Removes 57% of Illegally Minted USR Tokens
A hacker exploited Resolv's private key via AWS Key Management Service, minting 80M unbacked USR tokens using just ~$100K in USDC.
The attacker converted USR to wstUSR, swapped into stablecoins, and cashed out ~$25M in ETH (11,409 ETH) before anyone could react.
USR crashed from $1 to $0.025 on Curve Finance within 17 minutes.
Resolv's Response:
→ Burned ~9M USR on Day 1
→ Upgraded wstUSR contract to blacklist attacker wallets
→ Total 46M tokens (57%) permanently removed
→ No illicit USR remains on attacker addresses now.
But the reality:
→ Attacker already cashed out ~$25M in ETH
→ Protocol holds ~$95M assets vs higher liabilities (functionally insolvent)
→ USR peg NOT restored
→ 18 audits failed to catch the flaw
Root Cause: No mint limits, no oracle checks, single private key controlled minting. No multisig.
Key Lesson: Smart contract audits alone are NOT enough. Off-chain infrastructure security is equally critical for DeFi protocols.
Redemptions open only for pre-exploit USR holders via allowlist. Do NOT trade USR during recovery.