Circle Sued for Negligence in $280 Million Drift Protocol Hack
- A class action lawsuit has been filed against Circle Internet Group by Joshua McCollum, an investor in Drift Protocol.
- The lawsuit claims Circle was negligent during a hacking incident that resulted in the theft of approximately $280 million on April 1, with about $230 million converted to USDC.
- Hackers allegedly moved funds from Solana to Ethereum using Circle’s Cross-Chain Transfer Protocol (CCTP) within eight hours without intervention.
- Plaintiffs argue that Circle had real-time awareness and technical capability to freeze USDC transactions but failed to act promptly.
- Legal representation includes Gibbs Mura, A Law Group, and Joshua Joseph Law Firm LLC, seeking compensation for affected investors.
- Tether has offered over $127 million to compensate losses incurred by Drift Protocol following the breach.
This lawsuit highlights significant concerns regarding security and accountability in cryptocurrency markets, especially after a major hack involving substantial assets like USDC. The case underscores the importance of timely responses from crypto entities amidst evolving threats.
Circle is facing serious allegations of negligence related to a breach that allowed hackers to transfer $230 million in USDC without intervention, raising questions about operational integrity in the sector.
