Drift Protocol Secures $127.5M From Tether for Post-Hack Recovery

Tether, the largest stablecoin issuer, has committed up to $127.5 million to support Drift Protocol user recovery after it lost a staggering $285 million in a devastating April hack. Notably, the funding covers approximately 45% of the total losses from the recent exploit. 

The support aims to restore liquidity and rebuild trust in the largest perpetual futures platform on the Solana blockchain network.

Tether Stabilizes Drift with $127M 

Tether pledged to provide up to $127.5 million, with an additional $20 million expected from ecosystem partners. The funding structure includes a $100 million revenue-linked credit line, as well as grants and loans for market makers. Future exchange revenue will be allocated to a dedicated pool to compensate affected users over time. 

As part of the agreement, Drift plans to make USDT its primary settlement asset. The protocol is also removing compromised access points and implementing stronger safeguards with expert assistance. The financial support represents nearly five times Drift’s market capitalization at the time of the announcement. 

Meanwhile, the Drift Protocol team is currently finalizing details regarding eligibility criteria and timelines for user distributions. The recent move highlights Tether’s growing role as a stabilizer during major crypto events. Overall, the effort aims to stabilize the platform and strengthen trust in Solana’s decentralized finance (DeFi) ecosystem.

Drift Protocol Hit by Epic Crypto Heist

On April 1, 2026, attackers took control of Drift Protocol and drained approximately $285 million from its core vaults. The breach occurred rapidly, unfolding in about 12 minutes after the hackers exploited compromised multisignature admin keys. Forensic firms, including Chainalysis and TRM Labs, traced the operation to suspected groups linked to North Korea.

In response to the attack, Drift immediately suspended deposits and withdrawals to contain further damage. As panic spread among users, the total value locked in the protocol fell sharply from $550 million to under $250 million. The native DRIFT token also dropped more than 40% in value amid the chaos.

Subsequently, the hackers bridged over $230 million in stolen USDC to Ethereum using Circle’s Cross-Chain Transfer Protocol across more than 100 transactions. Since the breach, however, class-action investigations have been initiated to examine potential claims against the protocol and related parties. Security teams are continuing to work with law enforcement and analysts to trace the stolen funds.

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