Payy freezes stablecoin network after Ethereum bridge exploit

Payy has suspended all activity on its stablecoin payment network following an exploit of its Ethereum bridge contract. The incident, reported at 4:21 a.m. UTC on September 24, resulted in a large outflow of USDC and forced the company to pause deposits, withdrawals, transfers and card transactions while it investigates.

Bridge exploit details

A transaction on Ethereum at block 26044909 recorded the movement of 1,832,149.4681 USDC from a Payy rollup contract. The company described the bridge as being "drained of its full balance," but did not disclose the total amount lost or provide a transaction hash.

Operational impact

All Payy Network transactions are currently paused. Users cannot:

• Deposit stablecoins
• Withdraw funds
• Send transfers
• Make purchases with the Payy card

The freeze affects both the movement of stablecoins and their use for card payments.

Customer exposure

Payy has not released figures on how many users had balances or the extent of individual losses. The statement provided no technical explanation for the exploit and no timeline for restoring services.

Next steps

The company said it is following incident‑response guidelines and will issue further updates as the investigation progresses.