Yala, an active company in the digital currency sector, has issued a significant statement regarding the sudden price drop and liquidity crisis of its stablecoin YU. In September 2025, Yala suffered a hacking incident resulting in a loss of approximately $7.64 million in USDC tokens, equivalent to around 1,636 Ethereum (ETH) at the time. This event caused YU’s price to deviate from its peg, although the core protocol remained intact. The Yala team promptly invested $5.5 million to stabilize the situation, restoring YU’s price to its original level and normalizing protocol performance. By late October, Bangkok police arrested the hacker and recovered most of the funds, though the financial restitution process is still under judicial review. Some funds had been converted to Ethereum, leading to a reduction in the recovered amount’s original value due to market price fluctuations and attacker expenses.
Recent large withdrawals by small investors in the DeFi market have further exacerbated liquidity challenges, affecting the Euler protocol that supports Yala’s stability. Currently, certain positions and liquidity related to YU face restrictions. Yala clarified that it is not associated with Kamino’s lending products, nor is the AyCJ wallet linked to Yala or its team. The company is collaborating with financial partners and law enforcement agencies to stabilize liquidity and is reviewing necessary funding estimates. Yala has pledged to release a comprehensive plan by December 15, 2025, detailing fund recovery and future operations. This development comes amid growing concerns over liquidity issues and hacking incidents in the crypto market, which pose challenges to cryptocurrency stability and user trust, requiring time and effective management strategies to resolve.
Source: binance
