Re7 Labs has retained Pillsbury Winthrop Shaw Pittman to investigate the recent depegging of xUSD and explore legal avenues for asset recovery. The company had previously reached out to Stream Finance and Stables Labs but did not receive satisfactory responses. Legal notices have been issued to involved parties, demanding repayment and the preservation of evidence. In response to the incident, Re7 Labs has successfully restored Morpho Worldchain sdeUSD positions and reduced vault risk exposure by over 50%. The firm is actively pursuing all available legal options to address the situation and recover assets.