Re7 Labs affected by stablecoin protocol collapses with total losses exceeding 27 million USD

Foresight News reported that Re7 Labs released a report early this morning regarding the impact of the collapse of stablecoin protocols such as Stream, with the total amount reaching 27 million USD. Re7 Labs stated that Stream has currently repaid part of its loans on Plasma as well as a 7 million USD USDC loan on WorldChain, and has now removed the xUSD market.

Regarding deUSD and sdeUSD issued by Elixir, Re7 Labs stated that it has lowered the caps and moved funds out of markets containing deUSD and sdeUSD. Currently, all loan positions using sdeUSD as collateral on Plume have been fully repaid, but nearly 14 million USD in positions on the Morpho market on WorldChain and the Eluer markets on Avalanche and Plasma are still affected.

For Stables Labs, Re7 Labs stated that it discovered suspicious borrowing behavior on November 4 and requested Stables Labs to repay all loans by November 5. After the deadline, during communication with Flex Yang, the founder of Stables Labs, Re7 Labs found many contradictory statements and began coordinating with Lista DAO to liquidate the corresponding positions. Currently, the total positions affected by USDX and sUSDX exceed 13 million USD.

Re7 Labs stated that throughout this process, it has maintained active communication with contributors, external partners, and legal advisors, and will continue to do so to assist in handling and resolving the current situation. Re7 Labs is currently seeking legal advice to ensure a comprehensive assessment of all aspects of the incident and to develop appropriate legal and strategic responses.