Circle hit with class action lawsuit over alleged inaction in $280 million Drift exploit
The Block
Investors have sued Circle for allegedly failing to freeze $280 million in USDC stolen during a major hack on the Drift Protocol exchange.Summary
Circle is facing a class action lawsuit from Drift Protocol investors following a $280 million exploit on the Solana-based exchange. Plaintiffs allege that Circle failed to freeze stolen USDC funds despite having the technical capacity to do so, highlighting that the company had frozen funds in other instances. Circle CEO Jeremy Allaire has defended the firm's inaction, stating that Circle only freezes assets at the request of law enforcement to avoid significant moral and legal risks. Meanwhile, Drift Protocol has announced recovery efforts, including a $147.5 million support package from partners like Tether.
(Source：The Block)