The crypto-financial project Payy has officially initiated a claims process for users affected by a security breach that occurred on September 24. Following a total drain of its bridge contract on the Ethereum network, the platform has announced a 30-day window for victims to apply for compensation. As part of this recovery phase, the project confirmed that the Payy Wallet service is currently suspended and will be permanently decommissioned once the claims period concludes.
Security Breach Details and Immediate Response
On September 24 at 4:21 AM UTC, an attacker targeted Payy’s bridge contract on the Ethereum blockchain, resulting in the complete depletion of its liquid balance. In the immediate aftermath of the exploit, the team suspended all network activity, including all deposits and withdrawals, to prevent further losses. Because the project utilizes a specific privacy-focused architecture, the developers stated they are unable to independently verify individual wallet balances through standard ledger analysis.
- Incident Date: September 24, 2024
- Affected Asset: Ethereum bridge contract balance
- Current Status: All network transactions suspended
- Compensation Asset: USDC on the Ethereum network
Claims Procedure and Wallet Shutdown
To facilitate the reimbursement of lost funds, Payy has released a dedicated claims form. Due to the aforementioned privacy constraints, the project requires users to provide their wallet seed phrase to confirm the exact balance held at the time of the attack. While this is an unconventional requirement for a recovery process, the team maintains it is the only method to validate legitimate claims. Verified victims will receive their settlements in USDC, a dollar-pegged stablecoin.
Payy Wallet is currently suspended and will be fully shut down at the end of the claims window.
The initiation of this claims process marks the final stage of the project's current operational lifecycle. With the Payy Wallet scheduled for a full shutdown in approximately one month, users are encouraged to finalize their submissions before the deadline. This move signifies a permanent transition for the project following the critical vulnerability found in its cross-chain infrastructure.
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