A ffected users will receive recovery tokens representing a claim on a pool designed to repay $295 million in outstanding losses over time. Repayments are tied to exchange revenue and any recovered assets.
Related Brief 9h ago
stablecoins Tether’s $134M Bet on SDEV Isn’t About Speculation—It’s About Building the Rails for 570 Million People to Use Digital Dollars Daily
Stablecoin transaction volumes have already surpassed $33 trillion—more than Visa and Mastercard combined. For over 570 million people, Tether’s USDT isn’t speculative; it’s how they move, hold, and spend money. The $134 million financing round closed by Stablecoin Development Corporation (SDEV) in January 2026 isn’t about price swings or trading hype. It’s about building the infrastructure those users depend on. Tether Investments joined R01 Fund LP, Framework Ventures, and Sky Frontier Foundation in the private placement, directing capital toward hardening the rails that carry digital dollars across borders and blockchains. The proceeds allowed SDEV to acquire more than 2 billion SKY tokens and scale its role as an on-chain holding company. SDEV, which rebranded from NovaBay Pharmaceuticals and switched its ticker to SDEV in early April 2026, now serves as a public-market conduit to the stablecoin economy—offering institutional and retail investors regulated exposure to a sector that moves $300 billion in circulating value. Tether’s participation signals more than financial backing. It reflects a strategic push toward reliability and usability. That same month, Tether launched tether.wallet, its first self-custodial wallet for retail users, stepping directly into competition with MetaMask, Trust Wallet, and Phantom. The move marks a shift from being purely a settlement layer across 160 countries to becoming a consumer-facing platform. As regulatory clarity improves in key markets, the focus is no longer on whether stablecoins will be accepted—it’s on whether the infrastructure can sustain daily, global financial demand. Paolo Ardoino, Tether’s CEO, put it plainly: the next phase isn’t innovation for its own sake. It’s about systems that make digital dollars practical for everyday life, especially where traditional finance fails. Robust infrastructure enables that. And now, it has $134 million more to build it.
Drift Protocol secured $127.5 million from Tether and $20 million from other partners to fund the recovery. The package includes a $100 million revenue-linked credit facility from Tether, alongside ecosystem grants and loans to market makers. A portion of future trading revenue will be directed toward a reserve fund to gradually cover the losses.
Related Brief 2d ago
stablecoins Circle’s refusal to freeze $230 million in exploit funds reveals its legalist approach to asset control
Approximately $230 million in USDC linked to a $280 million exploit of Drift Protocol was bridged from Solana to Ethereum through Circle’s infrastructure without being frozen. On-chain investigator ZachXBT criticized the issuer for failing to act on the funds. Circle CEO Jeremy Allaire stated that the company freezes wallets only when directed by law enforcement or court orders. The exploit involved social engineering techniques and is potentially tied to North Korean actors. Allaire stated that unilateral action by private firms in such cases would raise ethical and legal concerns.
The recovery follows an April 1 exploit in which a North Korea-linked group gained administrative access through a social engineering operation. The attackers, who had posed as a quantitative trading firm for months, withdrew approximately $296 million in assets. The attackers transferred $232 million in USDC from Solana to Ethereum via Circle's cross-chain protocol. Following the incident, the DRIFT governance token lost 70% of its value.
Related Brief 2d ago
stablecoins Circle's Refusal to Freeze USDC in Real Time Allows $420 Million in Illicit Funds to Escape
Over $420 million in illicit funds have escaped since 2022 because Circle refuses to freeze USDC wallets in real time during hacks. Circle CEO Jeremy Allaire stated that the company only freezes wallets at the direction of law enforcement or the courts. This approach treats USDC as a regulated financial product subject to legal process rather than a tool for real-time intervention. Because legal processes move slower than blockchain transactions, stolen USDC remains in identifiable wallets for hours or days without being frozen. Attackers exploit the gap between Circle's technical ability to block addresses and its requirement for a formal legal basis. This pattern of inaction across more than a dozen cases since 2022 has contributed to the total losses.
As part of the relaunch, Drift is transitioning its settlement layer from USDC to USDT. The shift follows criticism of Circle for not freezing stolen USDC funds quickly enough. Circle CEO Jeremy Allaire cited a "moral quandary" and stated the company only freezes wallets upon receiving formal requests from law enforcement or court orders. Tether, by contrast, has a history of proactively freezing assets linked to hacks.
Related Brief 1d ago
tax law The PARITY Act would eliminate capital gains taxes on regulated stablecoin payments
Sellers of regulated stablecoin payments would recognize no gain or loss under the new draft of the Digital Asset PARITY Act. The bipartisan proposal, led by Representatives Steven Horsford and Max Miller, would treat routine spending with dollar-pegged stablecoins as non-taxable events. To qualify, a stablecoin must be issued by an authorized entity and maintain its peg within 1% for at least 95% of trading days over the prior 12 months. The bill would deem the taxpayer's basis to be $1 per unit, ignoring fluctuations within a $0.99 to $1.01 band. This shift would align regulated payment stablecoins with foreign currency rules. Current IRS guidance classifies stablecoins as digital assets taxed as property, meaning every use of USDC or USDT to buy goods triggers a reportable capital gain or loss event.
Drift will relaunch with USDT as its primary settlement stablecoin, supported by a market-making facility from Tether to ensure liquidity.
Related Brief 3d ago
cryptocurrency USDC Gains Foothold in South Korea Through Upbit's Market Dominance
USDC adoption is expected to increase among Korean retail traders and institutions using Upbit. Circle’s partnership with Dunamu gives it direct access to South Korea’s dominant cryptocurrency exchange, Upbit, which commands the largest share of trading volume and active users in the country. The collaboration is structured around a Memorandum of Understanding that prioritizes regulatory-compliant innovation and market infrastructure development. Circle will adapt its international compliance framework to meet South Korea’s strict digital asset oversight standards, enabling deeper integration of USDC into local financial applications. Educational programs on stablecoins and distributed ledger technology will be rolled out to both retail and institutional participants, aiming to reduce misinformation and promote responsible usage. By aligning with Dunamu, Circle strengthens its position in a market that demands transparency and regulatory adherence. The initiative reflects a broader industry shift toward partnerships between stablecoin issuers and regulated platforms. USDC adoption is expected to increase among Korean retail traders and institutions using Upbit.
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