- An unauthorized bridge led to 7.64 million USDC stolen.
- Attacker arrested; partial funds recovered pending review.
- Yala injected $5.5 million to stabilize operations.
Yala, a Bitcoin liquidity and stablecoin project, confirmed that on September 14, 2025, an attacker unlawfully withdrew 7.64 million USDC, causing temporary liquidity issues.
This incident underscores ongoing vulnerabilities in cross-chain bridges and its repercussions were evident in the market, amplifying liquidity concerns amid heightened retail withdrawals.
Yala Faces $7.64 Million Theft via Cross-Chain Bridge
An unauthorized cross-chain bridge exploited a temporary deployment key on Yala’s platform, withdrawing 7.64 million USDC and affecting the YU token’s value. On September 14, Yala’s team acted swiftly, announcing full containment of the situation on their official X account.
Yala injected $5.5 million of their funds to restore liquidity, partnered with legal forces for asset recovery, and maintained that Bitcoin reserves were secure. The protocol faced market panic, driven by increased retail withdrawals from DeFi that added to liquidity challenges, impacting platforms like Euler. Yala explains that the market dynamics were significantly influenced by investor behavior Yala stablecoin depegs.
In response to the incident, Vitalik Buterin emphasized the risks associated with cross-chain bridges. Yala reassured users, clarifying that unrelated wallet addresses had no connection to this event, aiming for a full resolution announcement by December 15. Law enforcement successfully arrested the attacker (Individual arrested for the Yala security incident) in Bangkok.
YU Token’s Volatility Post-Attack and Market Dynamics
Did you know? Yala’s quick recovery efforts after the September breach mirror past high-profile bridge exploits, such as the Wormhole hack, signalling a recurring challenge in DeFi security.
CoinMarketCap reports Yala’s stablecoin, YU, currently trading at $0.19, with a market cap of $15.89 million. Despite increasing retail withdrawals, the project maintains unaffected Bitcoin reserves. YU’s recent volatility shows a 73.56% drop within 24 hours and a consistent decline over three months Yala hack details and implications.
Yala(YU), daily chart, screenshot on CoinMarketCap at 23:07 UTC on November 17, 2025. Source: CoinMarketCapAccording to Coincu research, cross-chain bridge security flaws remain a significant barrier for DeFi stability. Yala’s situation underscores the need for enhanced frameworks to prevent future incidents. Monitoring the unfolding regulatory approach could provide insights into future DeFi innovations and investor protection strategies future DeFi innovations.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/news/yala-recovers-post-liquidity-attack/
