Stablecoin issuer Circle faces lawsuit over $230M Drift Protocol hack
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Circle was accused of aiding and abetting the conversion of the stolen funds and negligence after it did not freeze funds stolen from the Drift Protocol in April.
Circle Internet Group is facing a class action lawsuit led by a Drift Protocol investor claiming it failed to freeze funds stolen in a $280 million exploit of the protocol on April 1.
The lawsuit was filed by Drift investor Joshua McCollum on behalf of over 100 members in a US district court in Massachusetts on Wednesday, which accused Circle of allowing the attackers to transfer about $230 million worth of USDC (USDC) from Solana to Ethereum via Circle’s Cross-Chain Transfer Protocol (CCTP) over several hours without intervention.
“Circle permitted this criminal use of its technology and services,” attorneys representing McCollum wrote, adding: “These losses would not have occurred, or would have been substantially reduced, had Circle taken timely action.”
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