emergencyBreaking NewsTrump's Push for Fed Control Increases Market Volatility and Borrowing CostsRefinance Applications Rise 5% as 30-Year Fixed Rates Dip to 6.61%Stablecoin Yield Compromise Unlocks CLARITY Act's Path to Senate Banking CommitteeNew-Home Mortgage Applications Rose 11% Year Over Year in March, Shifting Purchase Volume to BuildersTether’s $150 Million Drift Protocol Backstop Sets Precedent for Post-Exploit RecoveryTrump's Push for Fed Control Increases Market Volatility and Borrowing CostsRefinance Applications Rise 5% as 30-Year Fixed Rates Dip to 6.61%Stablecoin Yield Compromise Unlocks CLARITY Act's Path to Senate Banking CommitteeNew-Home Mortgage Applications Rose 11% Year Over Year in March, Shifting Purchase Volume to BuildersTether’s $150 Million Drift Protocol Backstop Sets Precedent for Post-Exploit Recovery
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Home/Markets & Investing/DEFI EXPLOIT · TETHER USDT

Tether’s $150 Million Drift Protocol Backstop Sets Precedent for Post-Exploit Recovery

JE

Jamie Elsworth

DeFi exploit · Apr 17, 2026

Tether’s $150 Million Drift Protocol Backstop Sets Precedent for Post-Exploit Recovery

Source: DojiDoji Data Terminal

Users of Drift Protocol face $295 million in total losses following an April 1 exploit. To address the deficit, Tether has pledged $127.5 million, supplemented by $20 million from partner ecosystem funds, creating a total aid package of $147.5 million.

Related Brief3h ago
decentralized finance

Drift Announces $150 Million Recovery Pool for Hack Victims, Backed by Tether

Affected users of Drift, a Solana-based decentralized finance protocol, will receive compensation through a $150 million recovery plan. Tether has pledged up to $127.5 million to fund the initiative, with other partners contributing up to $20 million. The initial compensation will come from a portion of Drift's revenue and the newly established Recovery Pool. The protocol aims to fully cover $295 million in user losses as its revenue grows. Stolen assets are being traced, and any recovered funds will go directly into the Recovery Pool. Affected users will also receive transferable recovery tokens, separate from the existing Drift token, with details to be disclosed later.

The recovery framework avoids a single lump-sum payment. Instead, it establishes a $100 million credit line linked to the platform's future revenue, allowing Drift Protocol to reconstruct and restore clients without immediate repayment pressure. A recovery pool, drawing from exchange gross revenues and the pooled support funds, will be used to gradually compensate users for the $295 million loss.

Related BriefJust now
crypto security

Drift’s $148 Million Rescue Deal Puts User Repayments on a Revenue-Linked Clock

A portion of Drift’s future revenue will be directed to a special pool to compensate users who lost funds in a $295 million hack. The Solana-based protocol, reeling from the breach, secured $148 million from Tether and other partners to stabilize operations and fund recovery. That sum includes a $100 million revenue-linked credit facility, ecosystem grants, and loans to market makers. Unlike direct reimbursement, the payout to victims hinges on the protocol generating enough income to fill the compensation pool over time. Affected users will receive a special token certifying their claim rights, though the exact redemption mechanics are still pending. Drift will relaunch with USDT as its base settlement layer, shifting from USDC after criticism that Circle failed to freeze stolen funds—attackers withdrew over $60 million in USDC. The new architecture will feature a community-managed multisignature system, time locks for administrative actions, and real-time alerts, with all components audited by Ottersec and Asymmetric. The DRIFT token surged more than 21% to $0.05 on the news. Drift aims to fully cover user losses as revenue grows, but victims’ recovery now depends on the protocol’s commercial success.

To prevent the collapse of the trading environment, the package includes ecosystem grants and loans specifically for market makers to maintain liquidity and narrow spreads. As part of the relaunch, Drift Protocol will shift its settlement asset from USDC to Tether USD.

Related Brief1h ago
cryptocurrency

Polkadot’s Price Rebounded 10.4% After a Bridge Exploit Misinterpreted as a Network Failure

Polkadot price rebounded 10.4% on April 16, reaching an intraday high of $1.29, after a sharp sell-off earlier this week misinterpreted a bridge exploit as a systemic network failure. The token found support near $1.15 as the RSI signaled oversold conditions, prompting a relief bounce and improved market sentiment. The initial panic was driven by a security breach on the Hyperbridge gateway, where an attacker minted 1 billion bridged DOT tokens on the Ethereum network. However, investors soon realized the exploit did not compromise Polkadot’s Relay Chain or core security architecture. This clarification allowed the community to treat the incident as an isolated bridge issue rather than a fundamental flaw in the Polkadot ecosystem. Major exchanges like Upbit and Bithumb resumed normal services after temporarily suspending them to protect users from volatility, reducing liquidity bottlenecks and restoring trading confidence. A successful close above $1.31 could trigger further upside toward $1.42.

DeFi exploitTether USDT

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