Hacker Steals $25 Million from USR Stablecoin in Major Security Breach

A hacker successfully stole approximately $25 million from a cryptocurrency project called Resolv by exploiting a security flaw in their USR stablecoin system.

What is a stablecoin? A stablecoin is a type of cryptocurrency designed to maintain a steady value of $1, unlike Bitcoin which fluctuates wildly. USR was supposed to always be worth $1.

How the attack worked: • The hacker deposited $200,000 worth of USDC (another stablecoin) • Due to a programming error, they received 80 million USR tokens instead of 200,000 • This is like putting $1 in a vending machine and getting 500 candy bars instead of one

The immediate impact was devastating: • USR's value crashed from $1 to just $0.025 within 17 minutes • The hacker quickly exchanged the fake tokens for real cryptocurrencies • They converted everything to 11,409 ETH (Ethereum), worth about $23.7 million • USR later recovered to $0.85 but still hasn't returned to its $1 target

The security flaw was traced to poor programming that allowed unlimited creation of new tokens without proper checks. Resolv Labs has frozen all operations while investigating. They claim the actual money backing USR remains safe, but the damage to user trust is significant.

This incident highlights the risks in decentralized finance (DeFi), where code errors can lead to massive losses within minutes.

This is an AI-generated summary. Read the original article at: https://www.theblock.co/post/394582/resolvs-usr-stablecoin-depegs-after-attacker-mints-80-million-unbacked-tokens-extracts-roughly-25-million?utm_source=rss&utm_medium=rss