Tether Proposes Up to $127.5 Million for Drift Recovery Plan
The Solana-based trading platform will switch from USDC to USDT settlement when it relaunches after an April 1 exploit.
Tether has proposed contributing up to $127.5 million to Drift Protocol’s recovery plan after an April 1 exploit drained more than $286 million from the Solana-based trading platform.
The proposed package, combined with $20 million from other partners, would provide nearly $150 million to support user recovery and Drift’s relaunch. The funds are intended to help create a pool for losses tied to the exploit.
Drift will shift its settlement asset from USD Coin (USDC) to Tether’s USDT when it relaunches. The recovery framework also ties future platform revenue to efforts to restore user balances.
Drift said it is working with law enforcement and blockchain forensics teams to recover the stolen assets. A recovery token is planned for affected users, with each token representing a claim on the recovery pool.
The platform’s relaunch is planned after security reviews by two firms. Drift also plans tighter controls for multisignature signers, including dedicated signing devices and restricted access to signer identities.
