YU Token Falls to $0.20 After Security Incident Hits Yala

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YU Token Crashes to $0.20 After Security Incident Hits Yala

Written by Aaron S.,

Editor-In-Chief

Last Updated: September 15, 2025

Key Takeaways

YU stablecoin, backed by Bitcoin, fell to $0.2046 after a September 14 incident and has not yet regained its $1 peg;
Yala paused its Convert and Bridge features to reduce risk, while all user funds reportedly remain safe;
Lookonchain reports 120 million YU tokens were minted and partially sold, with funds moved across wallets and chains.

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YU Token Crashes to $0.20 After Security Incident Hits Yala

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Yala’s stablecoin, known as YU, has not returned to its target price of $1 after a security incident reported on September 14.

At one point, the value dropped to $0.2046. The YU token is backed by Bitcoin BTC $90,987.37 and is designed to maintain a value close to that of one US dollar.

The Yala team shared on X that the event caused a short-term disruption to the token's value. They confirmed that no Bitcoin used as collateral had been lost, and users' funds were either in self-custody or stored safely in vaults.

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To limit further problems, Yala suspended two services, Convert and Bridge. These are normally used to transfer or exchange YU tokens.

According to the company, all other parts of the platform are working normally, and user funds are secure.

Although Yala has not stated whether the incident resulted in losses, an analysis by Lookonchain suggests that someone created 120 million YU tokens on the Polygon network. They then moved and sold 7.71 million YU tokens across Ethereum ETH $2,994.51 and Solana SOL $136.16 , then received 7.7 million USDC USDC $1.00 in return.

Lookonchain further reported that the USDC was swapped for 1,501 ETH and spread across different wallets. The individual still holds 22.29 million YU tokens on Ethereum and Solana, with an additional 90 million remaining on Polygon that have not yet been moved.

Yala has been collaborating with SlowMist and other security experts to investigate the incident and prevent similar issues from occurring.

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