Following a security compromise reported on September 14th, the Yala stablecoin, referred to as YU, has been unable to regain its intended peg of $1.
The token’s valuation experienced a significant dip, plummeting to $0.2046 at its lowest point. The YU token is supported by
The Yala team communicated via X, announcing that this incident caused a temporary disturbance in the token’s price. They affirmed that no Bitcoin backing the token was compromised, and users’ assets remained secure, either in their personal wallets or within the company’s protected vaults.
Did you know?
Subscribe – We publish new crypto explainer videos every week!
How to Learn Crypto The Easy Way? (Trending Beginners’ Strategy)
To mitigate any potential further impact, Yala has temporarily disabled Convert and Bridge functionalities, which facilitate the transfer and exchange of YU tokens.
The organization has reported that all other aspects of the platform remain operational and that customer funds are protected.
While Yala hasn’t explicitly confirmed any monetary losses, an analysis by Lookonchain indicates the unauthorized creation of 120 million YU tokens on the Polygon blockchain. Subsequently, 7.71 million YU tokens were moved and sold across the
Lookonchain further detailed that the received USDC was subsequently converted into 1,501 ETH and dispersed across several digital wallets. The individual retains control of 22.29 million YU tokens on the Ethereum and Solana blockchains and has a substantial 90 million tokens remaining on Polygon, yet to be moved.
Yala is actively collaborating with SlowMist, in addition to other cybersecurity professionals, to conduct a comprehensive investigation into the matter and to implement measures to preempt similar events.
In related news, Kanye West’s YZY meme coin on Solana witnessed a dramatic loss of over 80% of its value within a week of its launch. Want to know how? Find out more.