Tether Launches $150M Recovery Program for Drift Protocol After Exploit
- Tether will contribute $127.5 million to a $150 million recovery program for the Drift Protocol decentralized exchange (DEX).
- The recovery plan follows a $280 million exploit of the Drift Protocol that occurred in April.
- Drift will change its settlement asset from Circle’s USDC to Tether’s USDt as part of its relaunch strategy.
- The exploit involved over $232 million in USDC transferred from Solana to Ethereum using Circle’s Cross-Chain Transfer Protocol.
- Circle faced criticism for not freezing the USDC wallets linked to the exploiter, resulting in a temporary stock decline of about 10% on April 9.
The recovery initiative illustrates a trend where crypto companies collaborate to restore user funds after significant hacks, emphasizing community resilience in the face of cybersecurity threats.
With Tether backing $127.5 million of the recovery efforts, this program aims to stabilize operations and restore user balances as trading resumes on Drift Protocol.(Source)
