Yala's Bitcoin-backed stablecoin YU depegs after security breach leads to unauthorized mint
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Quick Take
- YU, a Bitcoin-backed stablecoin from issuer Yala, depegged following a security breach on Saturday night.
- An attacker minted 120 million YU on the Polygon network without authorization, then bridged the fake stablecoins to other chains to exchange for real assets.
- The Yala team pledged to replenish all drained pools and called the situation “fully contained.”
- Yala’s stablecoin bounced between $0.70 and $0.95 on Sunday, but has not yet held its $1 peg.
An attacker minted 120 million YU tokens out of thin air, leading the Bitcoin-backed stablecoin to depeg from its $1 price target.
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