[Yala Responds to YU Depegging: ETH Decline Causes Recovered Asset Value to Shrink, Promises Clear Plan by December 15] BlockBeats News, November 18, Yala officially responded on X regarding the depegging of its stablecoin YU and the liquidity crisis. · 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 depeg, the core protocol had no vulnerabilities. The team injected $5.5 million in funds to maintain stability, after which YU regained its peg and the protocol resumed normal operations. · 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, since some funds were converted to ETH before recovery, subsequent price declines and funds already spent by the attacker led to a reduction in the actual recovered value. · Recent retail investor withdrawals from the DeFi market have triggered further panic, putting additional pressure on an already liquidity-strained market. Euler has also been affected, and positions and liquidity previously used to stabilize YU are currently restricted. · Yala has not integrated with Kamino lending products, and the wallet starting with AyCJ does not belong to the Yala team or related members. · The team is assessing the scale of funds needed to stabilize the market and is working with law enforcement and funding partners to advance financing efforts. Given the current liquidity constraints across multiple protocols and assets, this process will take time. The team promises to announce a clear plan by December 15, 2025, including the path to fund recovery and subsequent operational measures.