Drift Protocol announces user recovery plan, involving $295 million in losses

CryptoWorld News reports that the Drift protocol has announced the implementation of a user recovery plan to compensate for the $295 million loss that occurred on April 1st. The attack has been attributed to North Korea state-sponsored hacker group DPRK, confirmed by investigation firm Mandiant. Following the attack, the protocol immediately suspended trading and lending. Drift stated that the vast majority of stolen assets are still traceable, with approximately 130,259 ETH (about $31 million) concentrated in four monitoring wallets. The recovery framework will issue tokens, each representing $1 of verified loss. The recovery pool’s initial funding is about $3.8 million, expected to gradually increase through exchange revenues and support from Tether, aiming to match the total loss of $295 million. Some funds have already been frozen, including $3.36 million in USDC, with legal actions underway. Drift plans to relaunch in the second quarter as a “security-first” exchange, implementing measures such as new multi-signature controls and time lock operations.