Circle is facing a class action lawsuit from investors affected by the $280 million exploit of Drift Protocol, with plaintiffs alleging the firm failed to act quickly enough to freeze stolen funds.
The lawsuit, filed by a group of impacted users, claims Circle did not promptly freeze stolen USD Coin linked to the April 1 attack, despite having the technical capability to do so. According to the complaint, this delay allowed attackers to move a substantial portion of the funds across chains, complicating recovery efforts.
Drift Protocol, a Solana-based decentralized exchange, was exploited after attackers gained unauthorized access and manipulated the platform by introducing a malicious asset and bypassing withdrawal safeguards. The breach ultimately resulted in one of the largest decentralized finance losses in recent history. Investigations later revealed that the perpetrators had allegedly spent months posing as a legitimate trading firm before executing the attack.
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