Hacker Steals $13.5M from European Crypto Company StablR

A hacker successfully stole millions from StablR, a European company that creates digital versions of euros and dollars, causing their value to crash dramatically over the weekend.

What Happened: The attacker gained control of StablR's system and created $13.5 million worth of fake tokens (digital money that shouldn't exist). They then sold these fake tokens on cryptocurrency exchanges, pocketing real money in return.

Here's how the hack worked: • The hacker compromised StablR's security system (called a "multisig wallet" - like a digital safe that needs multiple keys) • They gave themselves admin powers and locked out the real owners • They created 8.35 million fake digital dollars (USDR) and 4.5 million fake digital euros (EURR) • They sold these fake tokens for about $2.8 million in real cryptocurrency

The Damage: StablR's digital currencies, which are supposed to maintain steady values, crashed hard: • EURR (digital euro) fell 26% to $0.85 • USDR (digital dollar) crashed 36% to $0.64

The hacker also destroyed millions worth of legitimate tokens held by other users, essentially burning their money.

Why This Matters: StablR was backed by major crypto companies like Tether and Kraken. This hack raises serious questions about their security practices - they used a weak security system that required only one signature instead of multiple approvals for important actions.

The company acknowledged the attack eight hours after it began, stating they're working to contain the damage and will share more details soon.

This is an AI-generated summary. Read the original article at: https://www.theblock.co/post/402429/stablrs-eurr-and-usdr-depeg-after-attacker-mints-13-5-million-in-unbacked-tokens-through-multisig-exploit?utm_source=rss&utm_medium=rss