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Circle due to unfrozen Drift Protocol funds stolen in a collective lawsuit
Deep Tide TechFlow News: On April 17, according to Cointelegraph, the stablecoin issuer Circle has been hit with a class-action lawsuit in the United States District Court for the District of Massachusetts for failing to freeze the stolen funds related to the April 1 attack on Drift Protocol.
The plaintiffs allege that within a few hours, the attacker used Circle’s cross-chain transfer protocol CCTP to transfer approximately $230 million USDC from Solana to Ethereum, and that Circle did not intervene. The lawsuit accuses Circle of allegedly assisting and abetting misappropriation and negligence.
Crypto analytics firm Elliptic previously suspected that this attack may have been linked to hackers supported by North Korea; the related funds were later exchanged for ETH and transferred via Tornado Cash.