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Payy Network L1 Rollup Bridge Forged Withdrawal

Incident date Sep 24, 2026Last updated Oct 8, 2026

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RecoveringEthereumRollup proof forgeryCluster: PAYY-ETH-2026-09

Estimated loss

$1.9M

Affected users

Number of affected users is not confirmed
Group joining is coming soon.

Investigation

95%

Facts and investigation

Ledger

Attacker

Payy Network Exploiter 1: 0xAa4985dBDaBfACa344237D40F7E06C4a0BB57E70 (Etherscan-labeled) | Payy Network Exploiter 3: 0xb483B1742aaD0a60a9FC91bb36C5a42dbE3F3D38 (Etherscan-labeled, funded by Exploiter 1)

Funds moved to

Exploiter 1 → Exploiter 3 → swapped across 6 tranches via Rizzolver / Uniswap X solver contract (0x225a38bc71102999Dd13478BFaBD7c4d53f2DC17, Wintermute-affiliated). Initial funding of Exploiter 1 via RAILGUN: Relay Adapt (0xAc9f360Ae85469B27aEDdEaFC579Ef2d052aD405).

Linked

Compromised prover key: 0x5343b904bf837befb2f5a256b0cd5fbf30503d38. Victim contract (RollupV1 bridge): 0x367C1eAF14AA06b78ce76bd0243297de79d85270. Attack executed in two batches totaling 1,828,589.38 + 90,202.82 USDC. Payy publicly denied any social-engineering or key-compromise cause, attributing the incident to a proof-generation flaw instead.

Chronology

1 beat
  1. At 04:21:23 UTC on September 24, 2026, Payy Network's RollupV1.verifyRollup function — which performs no deposit accounting and has no withdrawal cap — processed a forged withdrawal message with an all-zero burn hash, signed by Payy's own compromised prover key. The attacker had only deposited 10 USDC on L1 prior to the exploit, ruling out any user-side deposit accounting bug. A first batch of 1,828,589.38 USDC was withdrawn to Exploiter 1, followed by a second batch of 90,202.82 USDC. Funds were forwarded to a secondary address (Exploiter 3, officially labeled by Etherscan) and swapped in six tranches via the Rizzolver/Uniswap X solver contract, a Wintermute-affiliated settlement system. Payy removed the compromised prover/validator keys following disclosure and began a recovery process.

Sources and coverage

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