Yala Response to YU Unpegging: ETH Price Drop Leads to Asset Depreciation, Commits to Providing a Clear Plan by December 15

On November 18th, Yala issued an official statement regarding the anchor release of its stablecoin YU and the liquidity crisis. · On September 14, 2025, Yala experienced a hack, losing $7.64 million USDC (equivalent to approximately 1636 ETH at that time). Although this incident led to YU's temporary depegging, there were no vulnerabilities in the core protocol. The team injected $5.5 million in funds to maintain stability. Subsequently, YU reanchored, and the protocol resumed normal operations. · On October 29, 2025, the Bangkok law enforcement agency arrested the hacker, and most of the affected funds were recovered from the hacker. The case is currently in the judicial review stage. However, due to some funds being converted to ETH before recovery, and the subsequent price drop and the funds consumed by the attacker, the actual recovery value was reduced. · A recent retail exodus from the DeFi market has triggered more panic, putting additional pressure on an already illiquid market. Euler has also been affected. The previously used positions and liquidity to stabilize YU are currently restricted. · Yala did not integrate with the Kamino lending product, and the AyCJ initial wallet is not owned by the Yala team or related members. · The team is assessing the scale of funding needed for stabilization in the market and is working with law enforcement agencies and funding partners to advance financing. Given the current liquidity squeeze of multiple protocols and assets, this process will take time. The team is committed to announcing a specific plan by December 15, 2025, including the fund recovery path and subsequent operational measures.