Yala reported a liquidity incident involving its YU token following an exploit on September 14, when an attacker withdrew 7.64 million USDC through an unauthorized bridge. The team injected $5.5 million and used the Euler platform to restore liquidity, returning YU to its normal value by September 23.
The attacker was arrested on October 29, and most of the recovered funds are under legal review; some of the funds had already been converted to Ethereum or spent. Additionally, recent retail investor withdrawals reduced liquidity and impacted YU positions that had previously been stabilized.
Yala is working with authorities and financial partners and plans to release, before December 15, a fund recovery plan and operational measures to ensure the protocol’s long-term stability and operation.
Source: https://x.com/yalaorg/status/1990433626136404267
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