StablR Stablecoin Exploit Triggers EURR and USDR Depeg Amid $2.8 Million Loss

The crypto market faced another security scare after regulated stablecoin issuer StablR suffered an exploit that caused its euro and dollar backed stablecoins to lose their pegs. The incident raised concerns over crypto security practices, especially around wallet management and governance controls.

StablR Exploit Linked to Private Key Compromise

Blockchain security researchers said the attack appears to have started after one private key connected to StablR’s minting multisignature account was compromised. The multisig system reportedly operated on a weak one-of-three approval setup, allowing an attacker to gain control.

After access was obtained, the attacker allegedly added themselves to the wallet, removed other owners, and minted nearly 8.35 million USDR and 4.5 million EURR tokens. The newly created tokens were later swapped on decentralized exchanges.

EURR and USDR Lose Peg During Attack

The exploit pushed EURR nearly 23% below its intended value, falling from its euro-linked level to around $0.88. USDR dropped almost 30%, trading near $0.70 during the incident.

Security experts estimated that roughly $10.4 million worth of newly minted assets were exchanged for only about $2.8 million due to weak market liquidity.

Rising Crypto Security Risks in May

The incident adds to a growing list of crypto exploits this month, with several platforms suffering losses tied to compromised private or admin keys rather than smart contract flaws.