StablR freezes stablecoins after $13.5M token mint attack

European stablecoin issuer StablR has suspended minting and redemption services for its USDR and EURR tokens following a cyberattack that resulted in $13.5 million of unbacked tokens being minted. The breach, attributed to a weakness in a 1-of-3 multisig wallet, allowed attackers to compromise a key, mint the tokens, and net approximately $2.8 million due to thin liquidity. This incident has left the stablecoins under-collateralized, failing to meet the 1:1 backing requirement mandated by the EU's Markets in Crypto-Assets (MiCA) regulation. StablR is cooperating with cybersecurity firms, law enforcement, and regulators as the investigation continues.