$1.8M Stolen from Payy's Exploited Ethereum Bridge Contract

Payy, a stablecoin payments platform focused on privacy, has shut down its network after its Ethereum bridge contract was exploited on September 24. The incident resulted in approximately $1.83 million being drained from the contract, leaving users unable to move or spend their funds.

The company's statement did not provide a dollar figure, but on-chain analysts discovered that 1,832,149.4681 USDC had left the Payy rollup contract in a transaction recorded at Ethereum block 26044909. The attackers quickly moved the stolen funds through the Railgun privacy protocol, making it harder to track.

Payy has confirmed that the stolen assets were users' non-custodial deposits tied to the Payy Network and Payy Wallet. The company is working with law enforcement and industry organizations to recover the stolen funds and identify the attackers.