Yala responded to YU's disconnection, stating that the drop in ETH has caused the value of the recovery to shrink, and promised to provide a clear plan by December 15

Yala recently responded to the de-pegging of its stablecoin YU and the liquidity crisis.

1. On September 14, 2025, Yala suffered a hack, resulting in a loss of 7.64 million USDC (approximately 1,636 ETH at the time). Although this incident led to a temporary de-pegging of YU, there were no vulnerabilities in the core protocol. The team injected 5.5 million dollars 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, and most of the affected funds have been recovered from the hacker. The funds are currently undergoing judicial review, but some of the funds were converted to ETH before recovery, and subsequent price declines and the funds already consumed by the attacker have led to a decrease in the actual recovered value.

3. The recent withdrawal of retail investors from the DeFi market has triggered further panic, putting additional pressure on an already illiquid market. Euler has also been affected, as some positions and liquidity previously used to stabilize YU are now restricted.

4. Yala has not integrated with Kamino's lending products. The following wallet does not belong to the Yala team or related members: AyCJS5t4kwRauXShpNygmUqhA2xzwjjVvafNTknNV41X.

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