The post Yala’s Bitcoin-Backed YU Stablecoin May Fail to Regain Peg After Reported Attack appeared on BitcoinEthereumNews.com.

Yala’s Bitcoin-collateralized YU stablecoin lost its dollar peg after an attempted protocol attack, briefly falling to $0.2046; the team says user funds are safe while features like Convert and Bridge remain paused as security partners investigate. YU stablecoin fell to $0.2046 after an exploit attempt Yala paused Convert and Bridge; Bitcoin reserves remain self-custodial or in vaults Attacker reportedly minted 120M YU, swapped 7.71M for ~7.7M USDC, converted to 1,501 ETH YU stablecoin drops to $0.2046 after attempted attack; Yala confirms funds safe and pauses features while investigating — follow updates from COINOTAG. Yala’s Bitcoin-collateralized YU stablecoin dropped as low as $0.2046 after an attempted protocol attack, failing to restore its $1 peg. Yala’s Bitcoin-backed stablecoin YU has failed to regain its dollar peg following an “attempted attack” that sent the token down to $0.2046. COINOTAG reports the project has paused select features while security partners investigate. ‘, ‘ 🚀 Advanced Trading Tools Await You!Maximize your potential. Join now and start trading! ‘, ‘ 📈 Professional Trading PlatformLeverage advanced tools and a wide range of coins to boost your investments. Sign up now! ‘ ]; var adplace = document.getElementById(“ads-bitget”); if (adplace) { var sessperindex = parseInt(sessionStorage.getItem(“adsindexBitget”)); var adsindex = isNaN(sessperindex) ? Math.floor(Math.random() * adscodesBitget.length) : sessperindex; adplace.innerHTML = adscodesBitget[adsindex]; sessperindex = adsindex === adscodesBitget.length – 1 ? 0 : adsindex + 1; sessionStorage.setItem(“adsindexBitget”, sessperindex); } })(); What happened to Yala’s YU stablecoin? YU stablecoin suffered an exploit attempt that destabilized its peg; the team reports no funds lost and has paused Convert and Bridge features while working with blockchain security firm SlowMist and other partners to investigate. Short-term peg restoration attempts remain ongoing. How did the attacker reportedly exploit Yala? Blockchain analytics firm Lookonchain reported the attacker minted 120 million YU on Polygon, then bridged and sold roughly 7.71 million…

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Filed under: News - @ September 14, 2025 1:20 pm