The USPD V1 stablecoin protocol faced a sophisticated "CPIMP" (Clandestine Proxy in the Middle of Proxy) exploit that resulted in a loss of approximately $1 million in digital assets. The project team has announced a compensation/recovery plan that includes a public offer to the attacker and collaboration with law enforcement.
Details of the USPD V1 Attack and Compensation Plan
USPD, which stands for US Permissionless Dollar, is a decentralized finance (DeFi) stablecoin protocol. The incident occurred not because of a flaw in the core smart contract logic, which had been audited, but due to a complex administrative takeover during the initial deployment phase months prior."
