Resolv Labs has destroyed 36.7 million USR tokens after a security breach allowed someone to create 80 million new, unsupported tokens. This resulted in $24.5 million worth of ETH being sold, and caused a $34 million loss for the system.
Summary
- Resolv Labs used a contract upgrade to burn 36.73m USR from the attacker’s address after March’s minting exploit.
- The attacker created 80m unbacked USR with under $200k in collateral and dumped 34m USR for about 11,409 ETH (~$24.48m).
- The episode spotlights DeFi key management failures as Resolv faces an estimated $34m net loss despite claiming its collateral pool is intact.
Resolv Labs has eliminated 36.73 million USR stablecoins that were stolen in a March hack. The hack resulted in the creation of 80 million unbacked tokens and a loss of about $34 million for the protocol. According to on-chain analyst Yu Jin, Resolv Labs used a contract upgrade to destroy the stolen USR. The hacker had already exchanged roughly 34 million USR for 11,409 ETH (approximately $24.48 million), which is currently held at a specific digital address. Resolv Labs has recovered about 46 million USR in total, but the protocol still faces an estimated $34 million loss due to the value taken in ETH.
A flaw in how Resolv created its USR stablecoin allowed an attacker to generate $23 million worth of the coin without backing it with collateral. Using only around $200,000, the attacker exploited a weakness in Resolv’s system to create 80 million unbacked USR tokens and then sold them across various DeFi platforms. This caused USR to lose its stable value, dropping as low as $0.14 before recovering slightly. Resolv Labs had to halt operations and develop a plan to address the issue, which stemmed from a compromised key in their two-step token creation process, as reported by Chainalysis and crypto.news.
DeFi reacts as USR exploit ripples through markets
The recent USR exploit is now being studied as a prime example of the dangers of poor key management in the DeFi space, similar to other recent failures involving stablecoins and the spread of problems through lending platforms. Resolv Labs stated that, despite the attacker creating 80 million USR tokens, the underlying assets held as collateral are still safe. However, those who provided liquidity and users who borrowed against USR on various platforms experienced price drops and were forced to close their positions. Initial reports indicated USR’s price briefly fell to around $0.23-$0.27, and data suggests the attacker made between $23 and $25 million as the token lost its intended value on exchanges like Curve.
The recent incident where 36.73 million USR tokens were partially burned during a contract upgrade highlights a key issue with decentralized systems: while privileged controls can help prevent major failures, they also create potential weak spots. For those following Resolv and its RESOLV token – which has experienced price fluctuations after exchange listings and buybacks – this event raises concerns about whether stablecoins that earn yield can grow without creating single points of failure. As crypto.news previously reported regarding the USR price drop, DeFi platforms using interconnected stablecoins now need to strengthen how new tokens are created, regularly change security keys, and protect their underlying infrastructure just as carefully as they audit their smart contracts.
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2026-04-06 17:42