Tether leverages Drift Protocol hack to displace USDC on Solana

Drift Protocol users will recover their lost funds through a combination of exchange revenue and a recovery pool, rather than through a direct reimbursement. The recovery plan involves a portion of exchange fees and outside support funds, including a $127.5 million commitment from Tether, to fund the distribution. Users may receive a token representing a claim on this pool.

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cybersecurity

Kraken Refuses Ransom After Insider Breach Exposes 2,000 Accounts

Two thousand Kraken clients face the risk of their private data being leaked on social media. The exposure occurred after two support employees were recruited by a cybercrime group to gain improper access to internal systems. These employees recorded videos of internal systems containing client support data for 2,000 accounts, or 0.02% of the user base. Kraken revoked employee access and strengthened controls following a tip in February 2025. A criminal group subsequently threatened to release the videos to media outlets and social media unless payment was made. Kraken refused to pay or negotiate with the ransom demands. A criminal investigation is underway to identify and arrest the responsible individuals. 2,000 clients face the risk of their private data being leaked on social media.

This support comes as Drift Protocol transitions its settlement asset from USDC to USDT. The move displaces USDC, which currently holds a market cap of $8.1 billion on Solana, 2.65 times larger than USDT's $3.05 billion. Tether claims the move will bring 128,000 users and 35 ecosystem teams onto USDT-based trading on one of Solana's largest perpetual trading venues. Before the hack, Drift Protocol had a total value locked of $550 million.

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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.

The transition is triggered by a the April 1 hack in which North Korean-linked hackers compromised a multisignature wallet, resulting in a loss of $285 million. The shift in assets is further accelerated by Circle's failure to freeze the stolen funds. Circle now faces a class action suit accusing the firm of knowingly permitting attackers to offload $230 million in USDC via its blockchain bridge CCTP over several hours.

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ipo

Kraken’s IPO Gamble: How a 34% Valuation Cut Became Its Path to Wall Street Legitimacy

Kraken is pushing forward with its IPO at a $13.3 billion valuation—down 34% from its $20 billion target—because it’s no longer playing for a quick exit. It’s building a case for permanence in traditional finance. The company sold a 1.5% stake to Deutsche Boerse for $200 million, a move that didn’t just raise cash but anchored its worth in institutional credibility. That transaction turned a once-speculative price tag into one backed by a global exchange operator. The drop wasn’t a retreat. It was recalibration. In March 2026, when volatility spiked and crypto stocks like Gemini stumbled, going public at $20 billion would have risked an immediate post-listing plunge. Kraken paused. It waited. It let the market reset. By April 15, U.S.-Iran talks resumed, the VIX cooled, and Bitcoin hit $76,000—risk appetite returned. But timing wasn’t the only lever. Kraken secured something no other crypto firm has: a Federal Reserve Master Account. That link to the traditional banking system isn’t just operational. It’s transformative. It means Kraken’s settlement layer now sits inside the same infrastructure as major banks. Public investors needed time to absorb that shift. The delay wasn’t hesitation. It was strategy. Restarting at $13.3 billion leaves room for upside, protects early stakeholders, and ensures a strong trading debut. More importantly, it reframes the narrative. With Deutsche Boerse’s backing and Fed connectivity, Kraken isn’t selling crypto hype. It’s offering access to regulated financial infrastructure. The valuation cut wasn’t a loss. It was the price of admission to Wall Street.

Related Brief1d ago

cybersecurity

Kraken Refuses Ransom After Insider Breach Exposes 2,000 Accounts

Related Brief2d ago

tax law

The PARITY Act would eliminate capital gains taxes on regulated stablecoin payments

Related Brief1d ago

ipo

Kraken’s IPO Gamble: How a 34% Valuation Cut Became Its Path to Wall Street Legitimacy

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