{"id":71299,"date":"2026-04-17T19:31:20","date_gmt":"2026-04-17T19:31:20","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/circle-faces-lawsuit-after-drift-exploit-over-claims-it-took-no-action-to-freeze-the-funds\/"},"modified":"2026-04-17T19:31:20","modified_gmt":"2026-04-17T19:31:20","slug":"circle-faces-lawsuit-after-drift-exploit-over-claims-it-took-no-action-to-freeze-the-funds","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/circle-faces-lawsuit-after-drift-exploit-over-claims-it-took-no-action-to-freeze-the-funds\/","title":{"rendered":"Circle Faces Lawsuit After Drift Exploit Over Claims It Took No Action to Freeze the Funds"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<p><strong>Key Takeaways:<\/strong><\/p>\n<ul>\n<li>Circle faces claims it failed to freeze stolen USDC after the Drift Protocol exploit.<\/li>\n<li>Drift suffered steep losses, hurting <span>DeFi<\/span> sentiment and deepening pressure on <span>crypto<\/span> infrastructure.<\/li>\n<li>Courts may redefine issuer duties as the Circle case advances.<\/li>\n<\/ul>\n<h2>Circle Lawsuit Puts <span>Stablecoin<\/span> Controls Under Scrutiny<\/h2>\n<p> <span>Crypto<\/span> markets are facing sharper questions about legal accountability after major exploits expose weaknesses beyond the hacked platform itself. A class action filed April 14 focuses on whether Circle Internet Financial had a duty to act after the April 1 Drift Protocol <a href=\"https:\/\/news.bitcoin.com\/drift-protocol-sol-exploit-sees-over-200m-drained-biggest-defi-hack-of-2026\/\">breach<\/a>. The lawsuit centers on alleged failures tied to USDC and Circle\u2019s Cross-Chain Transfer Protocol (CCTP) during the movement of stolen funds.<\/p>\n<p>Rather than focus on how the exploit began, the complaint targets what allegedly happened after the theft. Gibbs Mura, A Law Group, which filed the lawsuit, stated:<\/p>\n<blockquote>\n<p>\u201cThe lawsuit charges Circle Internet Financial with knowingly permitting the attackers, reportedly tied to North Korea\u2019s government, to offload $230 million of their spoils over the course of several hours by using Circle\u2019s own <span>stablecoin<\/span> USDC and its <span>blockchain<\/span> bridge CCTP, instead of freezing the funds.\u201d<\/p>\n<\/blockquote>\n<p>That allegation places Circle\u2019s infrastructure at the center of the dispute. It also frames the case around whether technical control over <span>stablecoin<\/span> flows and bridge activity can create legal exposure during an active hack. The lawsuit was filed on April 14 and remains at an early stage.<\/p>\n<p>Circle addressed the situation on April 10, emphasizing legal limits tied to freezing funds and its broader compliance obligations. In a published statement, the company stressed: \u201cWhen Circle freezes USDC, it is not because we have decided, unilaterally or arbitrarily, that someone\u2019s assets should be taken from them. It is because the law requires us to act.\u201d The firm maintained that USDC operates within established regulatory frameworks, meaning any intervention must be authorized by relevant legal authorities. It also pointed to a gap between available technical capabilities and current legal structures, indicating that faster coordinated responses would require regulatory changes rather than unilateral action by issuers.<\/p>\n<h2>Drift Collapse Deepens Pressure Across <span>DeFi<\/span><\/h2>\n<p>Drift Protocol, a Solana-based <span>decentralized exchange<\/span>, was compromised through pre-signed administrative transactions prepared weeks in advance. Attackers later executed those permissions to seize governance control and drain funds. The exploit drained roughly $286 million within minutes, with attackers allegedly using fake collateral, durable nonce accounts, and social engineering tied to protocol signers. The breach also followed the removal of a timelock safeguard days earlier, which typically delays administrative actions.<\/p>\n<p>Separately, Tether <a href=\"https:\/\/news.bitcoin.com\/tether-steps-in-with-150m-support-plan-after-drift-protocol-loses-285m-in-exploit\/\">moved<\/a> to stabilize the situation with a $150 million support plan following the exploit. That response highlights how major <span>stablecoin<\/span> issuers may intervene differently during crisis events, offering <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-liquidity\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">liquidity<\/a> or backing rather than restricting flows.<\/p>\n<p>The law firm stated Drift\u2019s total value locked fell from about $550 million to under $250 million after the attack. It also noted at least 20 other <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-defi-decentralized-finance\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">DeFi<\/a> protocols reported indirect losses tied to Drift exposure, while the DRIFT token declined more than 40%. The case could become an important test of how courts view the responsibilities of <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">crypto<\/a> infrastructure providers after high-value breaches. The law firm noted:<\/p>\n<blockquote>\n<p>\u201cAfter the exploit, attackers allegedly bridged more than $230 million in stolen USDC from <a href=\"https:\/\/markets.bitcoin.com\/crypto\/solana?utm_source=bitcoin_news\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">Solana<\/a> to Ethereum using Circle\u2019s own infrastructure \u2014 across 100+ transactions over eight hours. Circle allegedly took no action to freeze the funds, despite having the technical and contractual authority to do so.\u201d<\/p>\n<\/blockquote>\n<p>That claim may shape debate over whether issuers and bridge operators are passive service providers or active control points during crisis events. For now, the lawsuit remains pending, and its early status means the allegations have not been tested in court.<\/p>\n<div class=\"not-prose my-3 lg:my-4\">\n<div class=\"flex flex-col overflow-hidden rounded-lg !bg-[#E8EDFA] p-[9px] md:hidden\">\n<div class=\"relative aspect-video w-full overflow-hidden rounded-[15px]\"><\/p>\n<h3 class=\"absolute inset-x-0 bottom-0 m-0 p-3 text-xl font-bold capitalize leading-[1.17] tracking-[-0.4px] !text-white\">Drift Protocol Hack 2026: What Happened, Who Lost Money, and What\u2019s Next<\/h3>\n<\/div>\n<div class=\"flex flex-col gap-2.5 px-1 pt-2.5 pb-1\">\n<p class=\"m-0 line-clamp-2 text-xs leading-[1.3] !text-[#67656E]\">A Solana-based perpetual futures exchange lost $286 million in 12 minutes on April 1, 2026, after attackers spent three weeks\u2026<\/p>\n<p><a class=\"flex h-[38px] w-full items-center justify-center rounded-pill bg-[#4169E1] text-sm font-medium text-white no-underline\" href=\"https:\/\/news.bitcoin.com\/drift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next\/\">Read Now<\/a><\/div>\n<\/div>\n<div class=\"hidden overflow-hidden rounded-lg !bg-[#E8EDFA] p-[9px] md:flex md:flex-row md:gap-3 lg:hidden\">\n<div class=\"relative size-[150px] min-w-[150px] shrink-0 overflow-hidden rounded-[15px]\"><img alt=\"Drift Protocol Hack 2026: What Happened, Who Lost Money, and What\u2019s Next\" loading=\"lazy\" decoding=\"async\" data-nimg=\"fill\" class=\"object-cover\" style=\"position:absolute;height:100%;width:100%;left:0;top:0;right:0;bottom:0;color:transparent\" sizes=\"150px\" srcset=\"\/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F04%2Fdrift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next-150x150.png&amp;w=32&amp;q=75 32w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F04%2Fdrift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next-150x150.png&amp;w=48&amp;q=75 48w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F04%2Fdrift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next-150x150.png&amp;w=64&amp;q=75 64w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F04%2Fdrift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next-150x150.png&amp;w=128&amp;q=75 128w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F04%2Fdrift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next-150x150.png&amp;w=256&amp;q=75 256w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F04%2Fdrift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next-150x150.png&amp;w=384&amp;q=75 384w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F04%2Fdrift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next-150x150.png&amp;w=640&amp;q=75 640w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F04%2Fdrift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next-150x150.png&amp;w=828&amp;q=75 828w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F04%2Fdrift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next-150x150.png&amp;w=1080&amp;q=75 1080w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F04%2Fdrift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next-150x150.png&amp;w=1200&amp;q=75 1200w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F04%2Fdrift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next-150x150.png&amp;w=1920&amp;q=75 1920w\" src=\"https:\/\/news.bitcoin.com\/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F04%2Fdrift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next-150x150.png&amp;w=1920&amp;q=75\"\/><\/p>\n<div class=\"absolute left-2 top-2\"><img src=\"https:\/\/news.bitcoin.com\/images\/uploads\/bitcoin_news_newlogo.svg\" alt=\"Bitcoin.com News\" class=\"size-7\" loading=\"lazy\"\/><\/div>\n<\/div>\n<div class=\"flex min-w-0 flex-1 flex-col justify-between gap-2\">\n<h3 class=\"m-0 line-clamp-3 text-xl font-bold capitalize leading-[1.17] tracking-[-0.4px] !text-[#1C1C1C]\">Drift Protocol Hack 2026: What Happened, Who Lost Money, and What\u2019s Next<\/h3>\n<p class=\"m-0 line-clamp-2 text-sm leading-[1.3] !text-[#67656E]\">A Solana-based perpetual futures exchange lost $286 million in 12 minutes on April 1, 2026, after attackers spent three weeks\u2026<\/p>\n<p><a class=\"flex h-[38px] w-full items-center justify-center rounded-pill bg-[#4169E1] text-sm font-medium text-white no-underline\" href=\"https:\/\/news.bitcoin.com\/drift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next\/\">Read Now<\/a><\/div>\n<\/div>\n<div class=\"hidden overflow-hidden rounded-lg !bg-[#E8EDFA] p-[9px] lg:flex lg:flex-row lg:gap-4\">\n<div class=\"relative size-[150px] min-w-[150px] shrink-0 overflow-hidden rounded-[15px]\"><img alt=\"Drift Protocol Hack 2026: What Happened, Who Lost Money, and What\u2019s Next\" loading=\"lazy\" decoding=\"async\" data-nimg=\"fill\" class=\"object-cover\" style=\"position:absolute;height:100%;width:100%;left:0;top:0;right:0;bottom:0;color:transparent\" sizes=\"150px\" srcset=\"\/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F04%2Fdrift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next-150x150.png&amp;w=32&amp;q=75 32w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F04%2Fdrift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next-150x150.png&amp;w=48&amp;q=75 48w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F04%2Fdrift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next-150x150.png&amp;w=64&amp;q=75 64w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F04%2Fdrift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next-150x150.png&amp;w=128&amp;q=75 128w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F04%2Fdrift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next-150x150.png&amp;w=256&amp;q=75 256w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F04%2Fdrift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next-150x150.png&amp;w=384&amp;q=75 384w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F04%2Fdrift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next-150x150.png&amp;w=640&amp;q=75 640w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F04%2Fdrift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next-150x150.png&amp;w=828&amp;q=75 828w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F04%2Fdrift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next-150x150.png&amp;w=1080&amp;q=75 1080w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F04%2Fdrift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next-150x150.png&amp;w=1200&amp;q=75 1200w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F04%2Fdrift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next-150x150.png&amp;w=1920&amp;q=75 1920w\" src=\"https:\/\/news.bitcoin.com\/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F04%2Fdrift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next-150x150.png&amp;w=1920&amp;q=75\"\/><\/p>\n<div class=\"absolute left-2 top-2\"><img src=\"https:\/\/news.bitcoin.com\/images\/uploads\/bitcoin_news_newlogo.svg\" alt=\"Bitcoin.com News\" class=\"size-7\" loading=\"lazy\"\/><\/div>\n<\/div>\n<div class=\"flex min-w-0 flex-1 flex-col justify-center gap-2\">\n<div class=\"flex items-start gap-3\">\n<h3 class=\"m-0 min-w-0 flex-1 line-clamp-2 text-2xl font-bold capitalize leading-[1.17] tracking-[-0.48px] !text-[#1C1C1C]\">Drift Protocol Hack 2026: What Happened, Who Lost Money, and What\u2019s Next<\/h3>\n<p><a class=\"flex h-12 w-[180px] shrink-0 items-center justify-center rounded-pill bg-[#4169E1] text-sm font-medium text-white no-underline\" href=\"https:\/\/news.bitcoin.com\/drift-protocol-hack-2026-what-happened-who-lost-money-and-whats-next\/\">Read Now<\/a><\/div>\n<p class=\"m-0 line-clamp-2 text-base leading-[1.3] !text-[#67656E]\">A Solana-based perpetual futures exchange lost $286 million in 12 minutes on April 1, 2026, after attackers spent three weeks\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/circle-faces-lawsuit-after-drift-exploit-over-claims-it-took-no-action-to-freeze-the-funds\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways: Circle faces claims it failed to freeze stolen USDC after the Drift Protocol exploit. Drift suffered steep losses, hurting DeFi sentiment and deepening pressure on crypto infrastructure. Courts may redefine issuer duties as the Circle case advances. Circle Lawsuit Puts Stablecoin Controls Under Scrutiny Crypto markets [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":71300,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/71299"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=71299"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/71299\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/71300"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=71299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=71299"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=71299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}