Payy Network Hit by $1.83M Ethereum Bridge Exploit

Payy Network's Ethereum bridge was compromised in a major exploit on September 24, resulting in the loss of approximately $1.83 million.

The attack occurred at 4:21 UTC when a transaction called Payy's verifyRollup function and moved 1,832,149 USDC from the bridge contract to a single address, with smaller transfers accounting for the remaining amount.

Payy has suspended all transactions on its network while investigating the breach and working with law enforcement and outside organizations to determine how the attacker gained access to the bridge contract.

The incident has raised questions about the controls protecting the bridge and the funds that remain there, with some pointing to Payy's prover and validator keys as potential vulnerabilities.