Payy Network halts operations after $1.83M Ethereum bridge exploit

Payy Network has suspended all operations, including deposits, withdrawals, transfers, and card transactions, following a major exploit of its Ethereum bridge on September 24. The attacker successfully drained approximately $1.83 million in USDC from the network’s L1 rollup bridge.

The breach occurred at 04:21 UTC via a malicious ‘verifyRollup’ transaction. Reports indicate that the attacker utilized Payy’s own prover and validator keys to execute the exploit. Investigators from Specter have traced the stolen funds through the Railgun privacy protocol, where the USDC was converted into roughly 683 ETH and distributed across various addresses to obscure the trail.

Payy has notified law enforcement and is working with external cybersecurity organizations to investigate the incident and assess the total impact. This follows a previous security vulnerability identified in June 2026 involving the platform’s zk-circuit logic, which was patched prior to any loss of funds.