Yala responded to the YU decoupling: the drop in ETH prices reduced the value of asset recovery, and promised to provide a clear explanation by December 15th.

Odaily Planet Daily reports that Yala officially responded to the de-pegging of its stablecoin YU and the liquidity crisis in a post on X.

1. On September 14, 2025, Yala suffered a hacker attack, losing $7.64 million USDC (equivalent to approximately 1,636 ETH at the time). Although this incident caused YU to temporarily de-peg, there were no vulnerabilities in the core protocol. The team injected $5.5 million to maintain stability, and YU was subsequently re-pegged, and the protocol resumed normal operation.

2. On October 29, 2025, Bangkok law enforcement arrested the hacker. Most of the affected funds have been recovered from the hacker and are currently under judicial review. However, due to the fact that some funds were converted into ETH before recovery, the subsequent price drop and the funds already consumed by the attackers have reduced the actual value of the recovered funds.

3. The recent exodus of retail investors from the DeFi market has triggered further panic, putting even more pressure on an already illiquid market. Euler has also been affected as a result, with some of its positions and liquidity previously used to stabilize YU now restricted.

4. Yala is not integrated with Kamino's lending products. The following wallets do not belong to the Yala team or related 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 financing. 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.