The hack of Payy's bridge loophole has rendered the crypto card unusable, making deposits no longer secure.

Payy, a payment card-based stablecoin network provider, announced the temporary suspension of all transactions after discovering that its bridge contract on Ethereum was hacked and cashed out on September 24.

What's going on?

Payy stated that the attack occurred at 4:21 pm UTC on September 24, with data on block Ethereum showing a transaction in that block.26044909 At 4:21:23 am UTC, moneyUSDC numbers1,832,149.4681 units flowed out of Payy's contract rollup .

However, the company's statement did not identify a topUSDC that was lost altogether, does not specify a transaction hash and has yet to explain the technical cause of the loophole. The figure shown is only money leaked from one contract; the total damage threshold awaits confirmation by Payy.

Who else was affected?

The suspension covers all deposits, withdrawals, transfers and credit card transactions, meaning users can't transfer stablecoins or make payments through the app for now.

The company did not disclose how many users had a fixed outage or attempted to log in during the shutdown, so there is no real measurable number of people affected. In addition, the amount of money that customers may have lost has not been disclosed.

Why is this important?

For Payy users, the inevitable consequence today is a complete shutdown. The actual financial damage has yet to be assessed. A key question now is when the system will return to normal operation and whether the loss of bridges will affect customer balances.

Payy stated that they are following the incident response guidelines and will announce more information in due course.

This is yet another case of a stablecoin payment service connected to the cross-chain bridge being compromised by a virtual contract vulnerability. As soon as new information comes in from Payy, we'll bring you an update.