KyberSwap Blocks Exploit-Linked Wallets After $80M USR Stablecoin Breach

A recent exploit targeting Resolv Labs' USR stablecoin has led to a significant breach of approximately $80 million in funds. The attack occurred when an attacker exploited weaknesses in the USR minting process, using around $100,000 to $200,000 in USDC deposits via the protocol's requestSwap and completeSwap functions.

The attacker was able to create an estimated 80 million unbacked USR tokens, which were then rapidly dumped onto various decentralized exchanges (DEXs) and fragmented through multiple transfers. This move caused significant market volatility, with USR crashing from its $1 peg to as low as $0.025 in some Curve pools before partially recovering to $0.40–$0.80.

KyberSwap acted quickly to contain the fallout by blocking all exploit-linked wallets on its aggregator platform, preventing further laundering or trades through KyberSwap and limiting additional damage to the ecosystem. Multiple DeFi protocols have taken measures to protect users, including pausing operations and allowing redemptions for legitimate holders.