Payy Crypto Card Services Halted After $1M+ USDC Drain

Payy's Ethereum bridge contract was exploited on September 24th, resulting in a massive drain of USDC funds. The incident occurred at 12:21:23 a.m. ET (4:21:23 a.m. UTC) in Ethereum block 26,044,909, with nearly all of the stolen funds, $1,828,589.3781 worth of USDC, going to one address.

Payy's investigation into the breach is ongoing, and the company has not disclosed the number of affected customers or whether any funds can be recovered. The firm described its wallet products as non-custodial, meaning users have control over their own funds, but the bridge contract was necessary for connecting network activity to Ethereum.

The exact cause of the exploit is still unknown, and Payy has not provided a timeline for when its network and card services will resume. The incident highlights the risks associated with decentralized finance (DeFi) and the importance of robust security measures in preventing such breaches.