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Tether announces $150M recovery program for Drift Protocol
TL;DR
Tether is launching a $150 million recovery program for the Drift Protocol decentralized exchange after an exploit in April. The plan includes $127.5 million from Tether and aims to restore user balances as trading activity resumes.
Key points
- Tether announces a $150 million recovery program for Drift Protocol
- The program includes $127.5 million from Tether
- Recovery linked to ongoing trading activity on Drift platform
Mentioned in this story
Tether
Drift Protocol
Stablecoin issuer Tether, the company behind USDt (USDT), said Thursday it will back a $150 million recovery program for the Drift Protocol decentralized exchange (DEX) following an exploit of the platform in April.
The recovery plan for the $280 million Drift Protocol exploit includes $127.5 million from Tether, with the rest coming from undisclosed partners, according to Tether’s announcement. Tether said:
“Rather than relying on upfront capital alone, the structure links funding and recovery to ongoing trading activity on the Drift platform, allowing user balances to be restored as the exchange returns to normal operations.”
The Drift Protocol platform will “contribute directly” to the ongoing recovery of user funds as the platform resumes normal trading activity.
The top 10 crypto assets stolen from the Drift Protocol in the exploit. Source: Quill Audits
Drift will also transition its settlement asset from Circle's USDC (USDC) dollar-pegged stablecoin to Tether’s USDt as part of the platform’s relaunch.
Cointelegraph reached out to Tether but did not receive a response by the time of publication.
The recovery program highlights a growing trend of crypto industry companies collaborating to restore user funds and help platforms resume normal operations after major hacks or cybersecurity attacks that cause hundreds of millions of dollars in losses.
Q&A
What is the Drift Protocol recovery program by Tether?
The Drift Protocol recovery program is a $150 million initiative by Tether to restore user funds following an exploit that occurred in April.
How much money is Tether contributing to the Drift Protocol recovery?
Tether is contributing $127.5 million to the $150 million recovery program for the Drift Protocol.
What happened to the Drift Protocol in April 2023?
In April 2023, the Drift Protocol decentralized exchange experienced an exploit that led to significant financial losses, prompting the need for a recovery program.
