MiCA Compliant Euro Stablecoin Depegs to $0.85 After 1-of-3 Multisig Exploit Drains Millions

StablR’s EURR and USDR prices fell sharply on May 24 after attackers minted unbacked tokens. A 1-of-3 multisig threshold reportedly allowed attackers to take over minting controls, draining about $2.8M in ETH. Onchain observers identified weak multisig governance as a risk not prevented by MiCA regulation. The breach was not attributed to a smart contract flaw. Attackers reportedly obtained access to a single private key controlling a multisig wallet that governed minting. With that key, attackers removed legitimate signers, added a controlled address, and issued tokens without collateral backing. Analysts estimated minting of about 8.35 million USDR and 4.5 million EURR, followed by selling across DEX pairs with thin liquidity, driving rapid peg breakdown.

"StablR's EURR dropped to $0.85, and USDR fell between $0.40 to $0.64 on May 24 after attackers minted unbacked tokens. A 1-of-3 multisig threshold reportedly let attackers hijack minting controls, draining roughly $2.8M in ETH. Onchain observers flagged StablR's alleged weak multisig setup as a governance risk that MiCA regulation did not prevent. Reports say the breach did not stem from a smart contract flaw."

"Attackers reportedly gained access to a single private key controlling a 1-of-3 multisig wallet that governed StablR's minting function. With one key, the attacker removed legitimate signers, added a controlled address, and issued tokens without collateral backing. At 8:10 a.m. ET on Sunday, StablR addressed the issue on X, stating: Security update: We have identified an exploit affecting StablR and are actively working to contain it and minimize impact. Protecting our users and your funds is our top priority. We'll share verified details and next steps as soon as possible."

"Onchain analysts estimated the attacker minted approximately 8.35 million USDR and 4.5 million EURR before selling them across DEX trading pairs with thin liquidity. The extracted value was reported at roughly 1,115 ETH, equivalent to approximately $2.8 million, though total unbacked token issuance may have reached $10.4 million. The selling pressure broke both pegs quickly. EURR fell to $0.85, down close to 24%. USDR dropped further, trading at $0.64, a decline of nearly 36% year-to-date. USDR tapped an intraday low of $0.40."

"StablR markets EURR as a euro-pegged stablecoin and USDR as a dollar-pegged token, both positioned as regulated instruments under the European Union's Markets in Crypto-Assets (MiCA) framework with proof-of-reserves disclosures. The company bridges traditional finance and decentralized finance markets. Security firm Blockaid flagged the in"

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