Yala responds to YU depegging: ETH decline has reduced the value of asset recovery, promises to provide a clear solution by December 15

According to ChainCatcher, Yala has recently responded to the depegging of its stablecoin YU and the resulting liquidity crisis.

1. On September 14, 2025, Yala suffered a hacker attack, resulting in a loss of 7.64 million USDC (equivalent to approximately 1,636 ETH at the time). Although this incident caused YU to temporarily depeg, there were no vulnerabilities in the core protocol. The team injected 5.5 million USD of their own funds to maintain stability, after which YU regained its peg and the protocol resumed normal operations.

2. On October 29, 2025, law enforcement in Bangkok arrested the hacker. Most of the affected funds have been recovered from the hacker and are currently under judicial review. However, since some funds were converted to ETH before recovery, subsequent price declines and funds already spent by the attacker have resulted in a reduction in the actual value recovered.

3. Recently, retail investors have been exiting the DeFi market, triggering further panic and putting additional pressure on an already illiquid market. Euler has also been affected, and some positions and liquidity previously used to stabilize YU are now restricted.

4. Yala has not integrated with Kamino lending products, and the following wallet does not belong to the Yala team or any related members: AyCJS5t4kwRauXShpNygmUqhA2xzwjjVvafNTknNV41X.

5. The team is currently assessing the amount of capital needed to stabilize the market and is working with law enforcement and funding partners to advance financing. Given the current liquidity crunch across multiple protocols and assets, this process will take time. The team has committed to announcing a clear plan by December 15, 2025, including a path to capital recovery and subsequent operational measures.