Yala released an analysis report on the liquidity event of the YU Token and plans to determine a clear recovery plan by December 15.

PANews, November 17th – Bitcoin liquidity and native stablecoin project Yala issued an update on X platform regarding recent liquidity issues with the YU Token: On September 14, 2025, an attacker created an unauthorized cross-chain bridge using a temporarily deployed Secret Key and withdrew 7.64 million USDC (approximately 1,636 ETH), causing YU to briefly de-peg, but did not touch the core protocol vulnerabilities, and Bitcoin reserves remained intact. The team injected $5.5 million of their own funds to replenish liquidity via the Euler platform, and by September 23, YU had fully recovered, restoring normal operations for the Yala protocol. On October 29, law enforcement in Bangkok arrested the attacker, with most of the funds recovered pending legal review. Some funds were converted to Ether in advance and the price fell, coupled with the fact that the attacker had spent some of the funds, leading to a reduced actual recovery value. More detailed information will be provided when legally permissible. Recently, retail investors have been withdrawing from DeFi, exacerbating market panic and tightening liquidity. Euler has been affected, as part of the stable YU's positions and liquidity have been restricted. Yala has not integrated with Kamino's lending products, and wallet addresses starting with AyCJS5 are unrelated to Yala and its team. The team is focused on protecting user interests and the long-term operation of Yala, and is assessing the required funding, raising capital with law enforcement and funding partners. Due to the tight liquidity of the protocol and assets, this process will take time, and a clear plan, including the path for fund recovery and next operational measures, is expected to be provided before December 15.