DeFi Crisis Deepens After One Key Breach Sparks $25M Loss

The Decentralized Finance sector is once again under scrutiny after a rapid security breach drained about $25 million from a major protocol, exposing persistent vulnerabilities and renewing concerns about structural risks across the broader DeFi market. According to details shared by industry participants, the exploit targeted the stablecoin protocol Resolv, which had accumulated more than $500 million in total value locked (TVL) prior to the attack. The attacker reportedly gained control of a privileged private key associated with a service role in the protocol's infrastructure, allowing them to execute a function in the minting contract to issue 80 million USR tokens with minimal collateral. These tokens were swapped for Ether, causing USR to plunge to cents on Curve pools. The incident occurred despite multiple security audits and a bug bounty program.