Yala has released an analysis of the September 14 attack, revealing that hackers exploited temporary deployment keys during the authorized cross-chain bridge setup to create an unauthorized bridge, stealing $7.64 million USDC (approximately 1,636 ETH). The YU token briefly depegged to $0.20 before stabilizing at $0.94. Yala confirmed no protocol vulnerabilities were exploited, and Bitcoin reserves remain unaffected.
The hackers have returned 22.287 million YU tokens, while 7.713 million YU were converted into 1,635.572 ETH. Yala plans to destroy the illegally minted YU tokens on September 23, restore the 1:1 USDC exchange rate, and compensate for liquidation penalties. The company also emphasized enhancing real-time monitoring and third-party audits.
Yala Reports $7.64 Million USDC Theft via Unauthorized Cross-Chain Bridge
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