What to know:
- Resolv temporarily pauses its protocol and app, disabling Airdrop claims and staking/unstaking of RESOLV tokens.
- The platform is working on a recovery plan, including tracking illicitly minted USR and coordinating with law enforcement to recover funds.
Resolv has temporarily paused its protocol and app following its recent security breach. The company announced earlier today on X that it shut down key services in order to contain the situation.
This means users can no longer access some features while the issue is being resolved. According to the update, Season 4 airdrop claims are also currently unavailable. Staking and unstaking of RESOLV tokens have also been disabled until further notice.
Source: Resolv Labs
The pause will remain in place until a full recovery plan is completed and the platform is confirmed to be safe for users to use. Resolv also said all services will be restored once the system is secure again.
Details Of The Resolv Attack
About 48 hours ago, the protocol experienced a cyberattack. A malicious actor managed to gain access to the platform through a compromised private key and minted about $80 million worth of uncollateralized USR tokens.
Also Read: Resolv Lab Suffers $25M DeFi Exploit as Attacker Turns $100K Into Millions
The team said it acted quickly after detecting the issue. Smart contracts were paused, and about 9 million USD linked to the attacker has already been burned to reduce the damage.
The company also confirmed that its core collateral was not directly affected, as the protocol still holds around $141 million in assets, with only about $0.5 million in redemptions recorded before the platform officially paused all services.
Recovery Efforts Underway
The company has shared that it is currently working on a recovery plan to stabilize the system. As part of this, it plans to enable redemptions for users who held USR before the incident, starting with some selected users.
The company is also tracking the illicitly minted tokens and working with partners, law enforcement, and blockchain analytics firms to investigate the attack. The goal is to recover funds and identify those responsible for the breach.
Users have been advised not to trade USR or related tokens during this period. The company warned that actions taken now could affect the overall.
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