- Resolv Labs suffered a private key exploit, resulting in the minting of 80 million unbacked USR stablecoins.
- The attacker stole roughly $23 million in Ether, causing the USR token to depeg and trade for pennies.
- Vault curators on the Morpho lending protocol with exposure to USR also incurred significant damages.
On Sunday, March 22, 2026, the decentralised finance protocol Resolv Labs revealed that a Hacker had exploited the minting process for its native stablecoin. The attacker created 80 million in unbacked USR tokens after gaining access to the project’s private keys, Resolv Labs said Monday.
They then swapped these tokens for Circle’s stablecoin and ultimately made off with roughly $23 million in Ether, according to onchain data. Consequently, the value of USR collapsed, trading as low as $0.02, CoinGecko data shows.
The project’s mint and redeem functions were turned off to mitigate further damage. However, the exploit stemmed not from Resolv‘s core balancing mechanism but from compromised infrastructure.
The attacker minted the massive sum using only $100,000 to $200,000 in collateral by overriding the protocol’s logic. This was possible after accessing Resolv’s key management service on Amazon Web Services, Chainalysis reported.
The mint contract lacked critical safeguards like oracle or max mint checks. Meanwhile, the damage rippled across the DeFi ecosystem, impacting integrated protocols.
Vault curators on the Morpho lending protocol with exposure to USR were hit hard. In total, roughly 15 vaults with more than $10,000 in liquidity were impacted, said Morpho co-founder Paul Frambot.
“I want to reiterate that there is no vulnerability in Morpho contracts,” said Merlin Egalite, a confounder at Morpho. Curators like Gauntlet and Re7 Labs suffered damages, with some automated services worsening losses post-exploit.
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