Drift Protocol Raises ~$150M from Tether After $280M Exploit, Plans Relaunch
Drift Protocol was hit by a $280–285 million security exploit on April 1, one of the largest DeFi hacks of the year. Tether led a recovery funding round totaling approximately $150 million — with up to $127.5 million earmarked directly for user reimbursement. As part of the deal, Drift is dropping Circle's USDC in favor of Tether's USDT as its primary stablecoin.
This is a direct blow to USDC's footprint in DeFi and a significant win for Tether's USDT, which continues to dominate stablecoin market share. For investors holding USDC or watching Circle's planned IPO, losing a major DeFi platform to a competitor is a negative signal. For USDT and Tether, backing a high-profile recovery effort is a reputational and market-share play that reinforces their position as the default stablecoin when platforms need deep liquidity fast.
Drift Protocol relaunch date (not yet confirmed — watch official Drift channels). Circle IPO timeline (S-1 filed, listing expected mid-2025). Tether's next transparency/reserve attestation report.
- Drift secures up to $127 million from Tether for user recovery, pivots from Circle’s USDC to USDT after $280 million exploit · The Block
- Hacked Crypto Platform to Relaunch After Securing New Funding · Bloomberg
- Circle hit with class action lawsuit over alleged inaction in $280 million Drift exploit · The Block
- Circle Hit With Class Action Lawsuit Over $285M Drift Protocol Hack · Decrypt
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