Drift Secures $148M From Tether and Partners to Compensate Hack Victims
CircleINFRASTRUCTURESolana-based protocol Drift has secured $148 million from Tether and other partners to recover from a $295 million hack and compensate affected users.
Tether Leads $148M Recovery Package for Hacked Drift Protocol
Drift, a decentralized trading protocol built on Solana, has announced a partnership with Tether and additional partners worth up to $148 million. The funding is aimed at rebuilding the platform following a devastating $295 million hack and gradually making affected users whole. Tether's contribution accounts for $127 million of the total package.
"Today, Drift is announcing a collaboration with @tether and other partners totaling up to nearly $150 million to support our commitment to a relaunch with USDT at the center, and a path to user recovery. These funds encompass a $100M revenue-linked credit facility, an ecosystem…" — Drift (@DriftProtocol), original post
Why This Matters
The $295 million Drift hack ranked among the most severe security incidents in Solana's DeFi ecosystem. Tether's decision to commit substantial resources to a hacked protocol sets a notable precedent — major stablecoin issuers stepping in as recovery partners for compromised platforms. The situation also spotlighted a rift with Circle, whose refusal to freeze stolen funds drew sharp criticism from the community.
Breakdown of the Funding Package
The support package consists of several components:
- A $100 million revenue-linked credit facility
- An ecosystem grant
- Credits allocated to market makers
During the initial phase, a significant share of the platform's revenue alongside the raised funds will flow into a dedicated compensation pool for affected users. As revenue grows, Drift aims to eventually cover losses in full.
Compensation Token Mechanism
To streamline the reimbursement process, the development team plans to issue a dedicated token distributed to every affected user. This asset will serve as a claim right against the compensation pool. The team indicated that further details on the distribution mechanics will be shared at a later date.
Following the announcement, DRIFT surged more than 21% to reach $0.05.
Full Protocol Relaunch
Drift will undergo a complete relaunch. Every component of the system will be subject to independent audits conducted by Ottersec and Asymmetric. Key security upgrades include:
- Community-governed multisignature implementation
- Signers operating on isolated devices
- Independent transaction verification prior to signing
- Timelocks for critical administrative actions
- Real-time alerts
- Disabling durable nonces
A pivotal decision in the relaunch is switching the base settlement layer from USDC to USDT. This move stems from Circle's decision not to freeze stolen assets — hackers managed to extract more than $60 million in USDC. According to the Drift team, North Korean hackers were behind the attack, with details disclosed in early April.
Market Reaction
The news of Tether's large-scale backing clearly buoyed market sentiment around Drift. The 21% price jump in DRIFT suggests traders view the recovery plan as credible. How the token performs going forward will largely depend on the success of the platform relaunch and the pace at which users receive their compensation.
Frequently Asked Questions
How much funding did Drift receive from Tether after the hack?
Tether contributed $127 million as part of a broader $148 million support package. The funding includes a $100 million revenue-linked credit facility, an ecosystem grant, and market maker credits.
How will Drift compensate users affected by the $295M hack?
Drift plans to issue a dedicated compensation token to each affected user, representing a claim against a dedicated recovery pool. Platform revenue and raised funds will be channeled into this pool, with the goal of eventually covering all losses.
Why is Drift switching from USDC to USDT?
The switch follows Circle's refusal to freeze stolen funds after the hack. Hackers extracted over $60 million in USDC, and the community heavily criticized Circle's inaction, prompting Drift to adopt USDT as its base settlement layer.
Who was behind the Drift protocol hack?
According to the Drift team, the $295 million attack was carried out by North Korean hackers. The details of the incident were disclosed in early April 2026.
What security measures will Drift implement in its relaunch?
The protocol will undergo independent audits by Ottersec and Asymmetric. New security features include community-governed multisig, signers on isolated devices, timelocks for critical admin actions, real-time alerts, and disabling of durable nonces.
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