Hacker Steals $1M After Minting 98M USPD in Stablecoin Exploit
On Dec 5, 2025, the USPD stablecoin protocol was hit by a sophisticated exploit that let attackers mint roughly 98 million USPD and siphon over $1 million in liquidity. The breach was identified via on-chain activity and security researchers monitoring the flows; impacted liquidity pools have seen significant outflows and pressure on the token’s peg.
The incident increases risk for liquidity providers and could trigger emergency responses such as pausing minting or blacklisting attacker addresses, though no official remediation has been confirmed at publication. Users are advised to avoid interacting with USPD contracts until the protocol team publishes verifiable recovery steps. The exploit underscores ongoing smart-contract vulnerabilities in stablecoin designs and is likely to prompt closer scrutiny from auditors and market participants.