Drift Protocol launches recovery plan after $295M hack

Drift Protocol unveils a recovery plan after a $295M hack, issuing recovery tokens for affected users. Compensation is funded by protocol revenue, Tether, and partners. Security upgrades are planned.

Drift Protocol experienced a $295 million exploit on April 1, 2026, attributed to a North Korea-linked actor. The attack resulted in the loss of approximately 130,259 ETH. Most stolen assets remain traceable across a few wallets, with some funds frozen or delayed during cross-chain transfers. In response, Drift introduced a recovery plan that issues recovery tokens to affected users, each representing $1 of verified loss. These tokens can be redeemed from a recovery pool funded by protocol revenue, up to $127.5 million in support from Tether, and up to $20 million from partners. The pool currently holds about $3.8 million and will grow until it matches total losses. Drift is also pursuing legal avenues to recover assets and has launched a 10% bounty on recovered funds. The protocol aims to relaunch in Q2 2026 with enhanced security measures, including new program deployment, removal of high-risk features, and tighter controls.