- The USR team has successfully burned and blacklisted $46M (57%) of the illicitly minted assets.
- The system has processed over $77M in user redemptions while holding $141M in collateral for stabilization of the protocol post-exploit
The USR stablecoin development team has responded to the $80 million security breach that occurred on March 22, 2026, with immediate damage control efforts. The protocol’s recent update shows that the system has eliminated most of the illegally created tokens while users can still withdraw their funds without any interruptions. So far, a total of $46 million worth of USR, which accounts for 57% of the total amount lost, has been permanently removed from the circulating supply. The steps used for recovering the funds include strategic token burns and blacklisting, with the end goal of completely removing the possibility of future exploitation.
Update on illicitly minted USR supply reduction
Of the total 80M USR illicitly minted during the exploit on March 22, 2026, approx. 46M (~57%) has been permanently removed from circulation through a combination of burns and blacklisting.
As a result, no illicitly minted assets…
— Resolv Labs (@ResolvLabs) March 26, 2026
Burn Strategy and Blacklisting Cut Supply
The first response to the security breach occurred on its actual date when the team conducted two burn transactions, which eliminated approximately 9 million USR from active circulation. The team took this immediate action to decrease the amount of hacked tokens. The investigation moved toward a broader segment of funds that were kept in wallets that were connected to the exploiters. Approximately 36 million USR existed in a wrapped format, which was known as wstUSR. The team used a smart contract upgrade to create address-level blacklisting, which they used to eliminate their assets.
The system implemented a 72-hour delay before it became possible to operate the upgrade because of its existing operational restrictions. The system prevented all wallet activities after the process ended, which resulted in total transfer and conversion blockage. The attacker lost all remaining USR as the remaining balance was burned to eliminate all illicit funds. As a result of these combined measures, no exploit-linked tokens remain in addresses capable of moving or liquidating them.
Redemptions Continue as System Stabilizes
The protocol protects legitimate users while it works to solve the compromised supply issue. More than $77 million in redemptions has already been processed for holders who owned USR before the exploit occurred. This ongoing redemption stream has been enabled by the robust position of the collaterals. The team has reconfirmed that $141 million of the backing assets remain in place, which is a vital buffer in the current phase of the recovery. The preservation of collateral has played a key role in maintaining confidence, enabling users to exit their positions and reclaim their funds without experiencing major delays. The outcome proves that although the exploit had serious consequences for the system, it did not succeed in destroying the system’s essential reserves.
The project demonstrates that recovery activities have been improved, as over half of the illegal supplies were removed and all tokens possessed by the hacker were shut down. They work on creating permanent security solutions while they try to improve their system for better security against any security breaches.
Read More Related Crypto News:
