Circle CRCL Sued Over $280M Drift Hack
Circle CRCL sued over $280M Drift Protocol hack, allegedly failing to freeze stolen funds. The lawsuit claims Circle had the technical ability and contractual authority to act.
Circle's Alleged Inaction
The complaint, filed in Massachusetts, alleges that Circle did not take action to freeze stolen funds, despite having the capability to do so. $280-$285 million was drained from the Solana-based exchange in under 12 minutes.
Transfer of Stolen Assets
The stolen assets were moved from Solana to Ethereum using Circle's Cross-Chain Transfer Protocol (CCTP) over the course of roughly eight hours, during US business hours.
Drift Hack Fallout and DeFi Exposure
The breach reportedly caused Drift's total value locked to fall sharply from about $550 million to under $250 million. At least 20 other DeFi protocols reported indirect losses related to exposure to Drift.
Circle's Prior Actions
Nine days before the Drift-related lawsuit, Circle froze 16 unrelated business wallets, demonstrating its capability to freeze funds when deemed appropriate.
Key Takeaways
- Circle CRCL is facing a lawsuit over the $280M Drift Protocol hack.
- The complaint alleges Circle failed to freeze stolen funds despite having the technical ability and contractual authority.
- The breach had a significant impact on Drift and other DeFi protocols, with at least 20 reporting indirect losses.
- Circle's Cross-Chain Transfer Protocol was used to move stolen assets from Solana to Ethereum.
Frequently Asked Questions
What is the nature of the lawsuit against Circle CRCL?
The lawsuit alleges Circle failed to freeze stolen funds after the Drift Protocol hack.
How much was stolen in the Drift Protocol hack?
An estimated $280-$285 million was drained from the Solana-based exchange.
