Yala responded to the YU de-pegging issue and the decline in ETH prices, which reduced the value of recovering stolen assets, promising to provide a clear solution by December 15th.

According to Mars Finance, Yala recently responded to the de-pegging of its stablecoin YU and the liquidity crisis. 1. On September 14, 2025, Yala suffered a hacker attack, losing $7.64 million USDC (approximately 1,636 ETH at the time). Although this caused YU to temporarily de-peg, the core protocol had no vulnerabilities. The team injected $5.5 million to maintain stability, and YU subsequently re-pegged, with the protocol resuming normal operation. 2. On October 29, 2025, Bangkok law enforcement arrested the hackers. Most of the affected funds have been recovered from the hackers and are currently under judicial review. However, because some funds were converted to ETH before recovery, subsequent price declines and the attackers' already consumed funds have reduced the actual recovered value. 3. Recent retail investor exodus from the DeFi market has triggered further panic, putting further pressure on an already illiquid market. Euler has also been affected, with some of its previously used YU stabilization positions and liquidity currently restricted. 4. Yala is not integrated with Kamino's lending products. The following wallets do not belong to the Yala team or its members: AyCJS5t4kwRauXShpNygmUqhA2xzwjjVvafNTknNV41X. 5. The team is assessing the amount of funding needed to stabilize the market and is working with law enforcement agencies and funding partners to secure funding. Given the current liquidity crunch across multiple protocols and assets, this process will take time. The team is committed to publishing a clear plan by December 15, 2025, including a funding recovery path and subsequent operational measures.