Crypto protocol Resolv loses $80 million after a security breach allows an attacker to mint fake tokens.

Key points

• An attacker gained unauthorized access to a private security key stored in Resolv’s cloud infrastructure, allowing them to mint $80 million worth of USR stablecoins.
• The protocol’s smart contracts lacked a "maximum issuance" limit, which would have prevented the massive, sudden increase in token supply.
• The value of the USR token crashed from its intended $1.00 peg to below $0.25 following the exploit.
• Approximately $25 million of the stolen funds has already been converted into Ethereum, making recovery nearly impossible due to the decentralized nature of that network.
• Resolv Labs is currently working to track the attacker and recover the remaining assets.

This incident highlights a major irony in the crypto industry: many "decentralized" projects rely on centralized, traditional cloud infrastructure, creating single points of failure. It serves as a stark reminder that even blockchain-based assets are vulnerable to the same security risks as traditional digital banking.