Payy Rules Out Compromised Key in $1.92 Million Bridge Drain

Payy, a private stablecoin payment network, reported that an initial analysis of its $1.92 million Ethereum bridge exploit indicates it was not caused by a compromised key, social engineering, or off-chain infrastructure exploit. The bridge was drained of USDC in two batches on Thursday via the verifyRollup function. The stolen funds, which were non-custodial user deposits, were converted to approximately 683 ETH via UniswapX. Payy has paused its network and wallet services while it verifies findings with an audit firm.