Circle Faces Lawsuit Over Alleged Delay After $280M Drift Protocol Crypto Hack Amid Fund Freeze Claims
Circle is now facing a lawsuit after a major crypto hack hit Drift Protocol. Investors say the company did not act in time when stolen money moved through its system.
The hack happened on April 1. Attackers stole around $280 million from Drift Protocol, a trading platform built on Solana. Soon after the attack, the hackers started moving the funds.
Hackers Move Funds Across Networks
Reports show that about $230 million in USDC was moved from Solana to Ethereum. The attackers used Circle’s cross-chain transfer system to do this. These transfers continued for hours.
Joshua McCollum, one of the affected investors, has filed the case. Over 100 investors have joined him. The case was filed in a US court in Massachusetts.
The main claim is simple. Investors say Circle had the power to freeze the stolen funds but did not use it. They believe quick action could have reduced the losses.
Investors Blame Circle’s Inaction
The lawsuit also says Circle helped the movement of stolen money by not stepping in. Lawyers argue that this allowed hackers to move funds freely and hide them later.
To support this claim, the case points to a past example. In an earlier situation, Circle froze several wallets. This shows the company can block funds when needed.
Experts say the hack was well planned. Some reports link it to North Korean hackers, who often target crypto platforms. These groups usually make many small transactions to avoid detection.
Debate Grows Over Crypto Responsibility
After moving the money, the attackers converted it into Ethereum. They then used Tornado Cash to hide the transaction trail. This made it harder to track the funds.
The case has started a bigger debate in the crypto world. Circle controls USDC, which means it can freeze tokens. But companies often wait for legal orders before taking such steps.
Some experts believe Circle made a careful choice. Lorenzo Valente from ARK Invest said freezing funds without legal approval can create problems. Such actions may raise questions about fairness and control.
The timing of this case is important. Crypto hacks have increased in 2026. Total losses have reached around $450 million this year. The Drift Protocol hack is the biggest so far.
The news has also affected the market. Circle’s stock has shown sudden changes. At the same time, trust in the Solana ecosystem has weakened.
The court decision in this case will matter a lot. It may decide what stablecoin companies must do during hacks. It could also shape future rules for crypto safety and responsibility.
