Resolv Labs has moved quickly to limit the damage from the recent exploit, permanently removing more than half of the illegally created tokens and locking down wallets linked to the attacker.
The company has asserted that these steps have resulted in the reduction of the risk of further misuse and have also helped in stabilizing the system.
The exploit took place on Sunday, March 22, 2026. The vulnerability allowed the attacker to mint 80 million USR tokens illicitly. In the realm of stablecoins and decentralized finance, such events can be damaging. They increase the token’s supply and, consequently, erode confidence in its value.
In the current context, Resolv Labs has taken several steps to eliminate the illicit tokens and prevent them from entering the market.
The latest update on the situation has asserted that approximately 46 million tokens of the USR currency, which is equivalent to 57 percent of the total illicitly generated tokens, have now been removed from circulation.
Token burn details
The protocol removed the illicit tokens using a mix of token burns and blacklisting addresses linked to the exploit. Burning the tokens permanently takes them out of circulation, while blacklisting ensures that funds held in those wallets cannot be transferred or used.
Most importantly, the company announced that no illicitly minted tokens remain in the possession of the attacker, which can be moved or sold. The announcement is crucial for the users and investors, as it implies that the threat of further loss has been mitigated.
There were several steps involved in the mitigation of the exploit. On the day of the hack, the team burned 9 million USR tokens in two different transactions. The majority of the tokens, 36 million USR, were in the wrapped version of the USR token, which is called wstUSR.
Because of the smart contract’s security rules, the team had to upgrade it. This meant that the addresses couldn’t be blacklisted for 72 hours. The tokens were successfully blacklisted after the waiting period.
The situation seems to be under control for now, but this incident is a reminder of the risks that still exist in decentralized finance. Even systems that are well-designed can have unexpected weaknesses. When something goes wrong, it’s important to respond quickly and communicate clearly.
Resolv response follows warning over circulating unauthorized tokens
The update comes after Resolv Labs earlier indicated that the protocol still held about $141 million in assets, but users were cautioned about the large number of unauthorized tokens in the market.
According to the update, about 71 million illegally minted USR tokens are currently in the market, while only about 102 million valid tokens were officially minted by the platform.
The firm has cautioned users against trading USR or other tokens for the time being, as the process might interfere with the recovery of the system.
The firm is also working on the resumption of the process for users who had valid tokens at the time of the incident, with a list of approved users to begin the process.