In a significant development for the decentralized finance sector, Drift Protocol has unveiled a comprehensive recovery plan following a major hack that resulted in the loss of $295 million in user funds. According to the results published in the material, the Solana-based exchange aims to compensate affected users and relaunch with enhanced security measures after the April 1 attack attributed to North Korean hackers.
Attack on Drift Protocol
The attack, confirmed by forensic firm Mandiant, led to the temporary suspension of all core functions on Drift Protocol, including trading and borrowing, to mitigate further unauthorized access. Currently, approximately 130,259 ETH, valued at around $293 million, remains locked in four Ethereum wallets that are under constant surveillance.
Recovery Plan for Affected Users
To address the losses suffered by users, Drift Protocol plans to issue recovery tokens to each affected wallet, with each token representing $1 of verified loss. Users will be able to redeem these tokens once the recovery fund surpasses $5 million.
Future Plans for Drift Protocol
The team is aiming for a relaunch in the second quarter of 2026, with a focus on creating a more streamlined and security-oriented exchange.
Following the recent developments at Drift Protocol, Tether has announced a strategic partnership to support user recovery efforts. This collaboration aims to enhance security and restore confidence in the platform, as detailed in the recovery plan.
