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Payy Network halted transactions after an attacker drained about $1.83 million from its Ethereum bridge on September 24.
The network suspended deposits, withdrawals, transfers and card transactions while investigating the breach. Payy is working to determine how the attacker gained access to the bridge contract and said it has followed its incident-response procedures.
Today at 4:21 UTC Payy’s bridge contract on Ethereum was exploited and drained of its full balance.
— Payy (@payy_link) September 24, 2026
Investigation is ongoing and we are following incident response guidelines.
While we investigate, all Payy Network transactions are paused including deposits, withdrawals,…
The company also notified law enforcement and is working with outside organizations to investigate the exploit and assess its impact.
Ethereum Bridge Suffers Major Drain
The attack began when a transaction called Payy’s verifyRollup function and moved 1,832,149 $USDC from the bridge contract. Nearly $1.83 million went to a single address, with smaller transfers accounting for the remaining amount.
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Investigators later traced part of the funds through swaps into Ethereum. Specter said the attacker also used Railgun, making the movement of the assets harder to track.
Prover Key Raises Security Questions
ExVul alleged that a forged withdrawal was included in a verified batch and pointed to Payy’s prover and validator keys. Payy has not confirmed those claims.
🚨 ALERT — Exploit on Ethereum
— ExVul (@exvulsec) September 24, 2026
Payy @payy Network's L1 rollup bridge (RollupV1) was drained for ~$1.83M (1,828,589 $USDC, ~95% of its $USDC) in a single verifyRollup batch.
The batch was sent by Payy's own prover key and signed by its own validator key.
Hidden among ordinary…
Sprunky said the attacker converted the stolen $USDC into about 683 $ETH and spread the funds across multiple addresses. Those details also remain unconfirmed by Payy.
The breach has raised questions about the controls protecting the bridge and the funds that remain there. Payy said it will provide further updates as the investigation continues.
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