- Drift secures up to $127 million from Tether for recovery
- Losses from the exploit reached around $280 million
- Users will receive recovery tokens tied to repayments
- Platform will relaunch using USDT instead of USDC
Funding Secured for User Compensation
Drift Protocol has secured a recovery package of up to $127 million from Tether to compensate users after its recent exploit.
The plan also includes additional support from partners, bringing total backing closer to the scale needed to address user losses.
How Users Will Be Repaid
Instead of immediate full payouts, Drift plans to distribute a recovery token. This token represents a claim on a recovery pool funded over time through platform revenue and any recovered assets.
This approach allows affected users to either wait for repayment or trade their claim earlier.
Shift From USDC to USDT
As part of its relaunch, Drift will move away from Circle’s USDC and instead use USDT as its main settlement asset.
The change follows criticism over how quickly frozen funds were handled after the exploit.
Security Overhaul After Major Hack
The exploit, which reached around $280 million, was linked to a complex attack involving social engineering.
Going forward, Drift plans to introduce stricter security measures, including audits, improved key management, and stronger controls over admin access.
