Resolv Digital Assets Ltd. is grappling with a significant setback as its USR stablecoin has plummeted in value following a major security breach. The stablecoin, which is designed to maintain a value of $1, is currently trading at just $0.27, marking a staggering 72% decline over the past week.
On Sunday morning at approximately 2:21 a.m. UTC, an attacker exploited vulnerabilities in Resolv’s minting contract, generating around 80 million unbacked USR tokens. This illicit activity resulted in the extraction of nearly $25 million, as confirmed by blockchain security firms and onchain data.
The attacker swiftly converted the minted USR into USDC and USDT on decentralized exchanges, subsequently exchanging the proceeds for Ethereum (ETH). They now hold a substantial amount of 11,409 ETH, valued at about $23.7 million, along with $1.1 million in wrapped USR stored in a separate wallet.
Initially, USR’s value dropped to $0.025 within 17 minutes of the minting incident, although it later rebounded to around $0.85. However, it has failed to regain its intended peg to the dollar. As of Monday morning, USR’s trading price stood at $0.27.
This notice is issued on behalf of Resolv Digital Assets Ltd. in relation to the Resolv protocol. Earlier today, a malicious actor gained unauthorized access to Resolv infrastructure through compromised private key, resulting in the minting of approximately $80M of… — Resolv Labs (@ResolvLabs) March 22, 2026
Resolv’s initial statement attributed the incident to a compromised private key and a targeted infrastructure breach. However, further analysis revealed deeper structural flaws within the system. The SERVICE_ROLE, a critical account responsible for processing swap requests in the minting contract, was controlled by a single externally owned account rather than a multisig setup. Additionally, the contract lacked essential safeguards such as oracle checks, amount validation, and maximum mint limits.
In a notable lapse, the attacker deposited 100,000 USDC and received 50 million USR in return—approximately 500 times the expected amount—due to the absence of checks within the system to validate the minting ratio.
Data from DeFiLlama indicates that Resolv’s total value locked (TVL) peaked at nearly $684 million in February 2025, but has since dwindled to around $95 million prior to the exploit.
In response to the incident, Resolv has stated that it is collaborating with law enforcement and blockchain analytics firms to explore all possible avenues for asset recovery. The team has also cautioned users against trading USR while recovery efforts are underway, warning that user actions during this period could impact recovery efforts.
As the situation unfolds, stakeholders in the decentralized finance (DeFi) space will be closely monitoring Resolv’s next steps and the broader implications for stablecoins.
Resolv's USR stablecoin has experienced a drastic decline in value following a $25 million exploit that revealed critical vulnerabilities in its minting contract. The company is now focused on asset recovery while advising users against trading USR during this recovery period.