Payy Says Stolen Funds Made Mnemonics Necessary for Claims

Payy says all funds held on its blockchain were stolen in the Sept. 24 attack, and that requests for users’ mnemonic phrases are limited to verifying balances for compensation claims. The privacy-focused stablecoin payment network said its design allows only wallet users to view their balances. Without a mnemonic phrase or private key, Payy cannot independently confirm how much USDC a user held. Payy said the credentials apply only to its wallet and that the mnemonic phrase has no remaining value beyond identifying the amount of USDC in the affected wallet.