#drift protocol

[rwatimes]

Drift Protocol Insurance Fund opens for withdrawals ahead of relaunch

➤ Drift Protocol's Insurance Fund survived a $280M exploit and will be available for withdrawals upon relaunch, supported by ~$150M in recovery funds from Tether. ➤ The protocol, a Solana-based perpetual futures exchange, experienced an exploit in April but paused operations before the Insurance Fund was compromised. ➤ The relaunch is targeted for Q2 2026 with a USDT-settled, futures-only model, aiming for deeper liquidity and reduced volatility, though concerns remain about the full recovery of stolen user funds.

[rwatimes]

Drift Protocol’s Insurance Fund remains intact after risk pause

Drift Protocol says its USDC Insurance Fund was not affected during a recent risk incident because the protocol paused before losses hit the safety net.

➤ Drift Protocol successfully navigated a recent risk incident without depleting its USDC Insurance Fund due to a timely protocol pause. ➤ The incident, potentially linked to a large-scale exploit, highlights the importance of 'circuit breaker' mechanisms in DeFi for risk management, even at the cost of some decentralization. ➤ While the Insurance Fund remains intact, the broader impact on user capital and the protocol's overall solvency outside the fund is still an open question.

[rwatimes]

The Funding: How DeFi hacks could hit crypto funds

DeFi’s latest hack wave is likely to add pressure on liquid and yield-focused crypto funds already navigating a tough market.

➤ April saw a record number of DeFi hacks, resulting in over $630 million in losses, primarily from the Drift Protocol and KelpDAO exploits. ➤ These hacks are increasing pressure on liquid and yield-focused crypto funds due to token price depreciation and weakened confidence, despite arguments that losses relative to TVL remain below previous peaks. ➤ While the industry showed maturity with coordinated responses like the DeFi United bailout, the focus is shifting towards continuous monitoring, better key management, and tighter controls rather than one-time audits, as security spending remains low.

[rwatimes]

De la DeFi au braquage d'État : le bilan à 577 millions des hackers nord-coréens

En 2026, la Corée du Nord a dérobé 577 M$ via Drift et KelpDAO. Analyse des tactiques de Lazarus et de la nécessité de professionnaliser sa gestion DeFi.

➤ North Korean hackers, linked to the Lazarus group, have stolen $577 million in early 2026 through sophisticated attacks on DeFi protocols like Drift and KelpDAO. ➤ The attacks involved months of preparation, social engineering, and exploitation of protocol vulnerabilities, including Solana's durable nonces and bridge weaknesses. ➤ The article highlights the increasing sophistication of these attacks, the challenges in tracing laundered funds, and the urgent need for professional DeFi risk management and auditing.

[rwatimes]

Hack de Drift : l'entreprise abandonne Circle (USDT) au profit de Tether (USDT)

Le protocole de trading Drift se tournera désormais vers Tether (USDT), après son hack massif en début de mois

➤ Drift Protocol is switching from Circle's stablecoin to Tether (USDT) following a major hack, citing Circle's alleged inaction in blocking stolen funds. ➤ Tether has offered $127 million to cover losses and support Drift's relaunch as a USDT-based perpetual DEX on Solana, with other partners contributing an additional $20 million. ➤ The move is a significant blow to Circle, which is also facing lawsuits from users who lost funds due to the alleged delay in freezing assets.

[rwatimes]

Here’s What’s Actually Moving Crypto Markets This Week

Key Takeaways Tether committed $127.5M to rescue Drift Protocol after a ~$285M exploit. Bitcoin approached $76,000 as BlackRock-led ETF inflows […] The post Here’s What’s Actually Moving Crypto Markets This Week appeared first on Coindoo.

➤ Tether has committed $127.5M to rescue Drift Protocol post-exploit, structuring it as a revenue-linked credit facility and mandating the adoption of USDT, intensifying the stablecoin war. ➤ Bitcoin's rally towards $76,000 is driven by institutional ETF inflows, particularly from BlackRock, rather than retail interest, with a broader risk-on sentiment in traditional markets influencing crypto. ➤ A contentious Bitcoin protocol proposal (BIP-361) to freeze quantum-vulnerable wallets has divided the developer community, raising concerns about coin ownership and immutability.

[rwatimes]

Should Circle Have Frozen the Drift Exploit Funds?

Should Circle Have Frozen the Drift Exploit Funds?. Filter signal from noise with the best source of information for everything happening in Web3 and DeFi. Monday to Friday.

➤ Circle chose not to freeze $230 million in USDC stolen from the Drift protocol, sparking debate over its role in cross-chain settlement and compliance obligations. ➤ The incident highlights a gap in compliance frameworks governing Circle's active, centralized role in cross-chain bridges, distinct from its general freeze authority. ➤ The article also touches on other news including Payward's acquisition of a CFTC-regulated CEX, memecoin market activity, and Mitsui & Co.'s launch of tokenized metals on Optimism.

[rwatimes]

Stablecoin Issuer Circle Faces Lawsuit Over Drift Protocol Hack

Circle Internet Group faces a class-action in a Massachusetts federal court over claims it failed to intervene as attackers siphoned funds during the Drift Protocol exploit. The lawsuit, filed by Drift investor Joshua McCollum on behalf of more than 100 claimants, contends Circle...

➤ Circle is facing a class-action lawsuit for allegedly failing to intervene during the Drift Protocol hack, which resulted in the loss of approximately $230 million in USDC. ➤ The lawsuit claims Circle's Cross-Chain Transfer Protocol (CCTP) was used to move funds between Solana and Ethereum without timely action, and that Circle had the technical capability to freeze the compromised assets. ➤ The case raises broader questions about the liability of crypto firms and infrastructure providers in preventing theft and the balance between intervention capabilities and legal authority.