{"id":143505,"date":"2026-04-16T14:13:54","date_gmt":"2026-04-16T14:13:54","guid":{"rendered":"https:\/\/daddyofincome.com\/index.php\/2026\/04\/16\/tether-commits-127-5m-to-drift-protocol-post-hack-how-will-affected-users-get-paid\/"},"modified":"2026-04-16T14:13:54","modified_gmt":"2026-04-16T14:13:54","slug":"tether-commits-127-5m-to-drift-protocol-post-hack-how-will-affected-users-get-paid","status":"publish","type":"post","link":"https:\/\/daddyofincome.com\/index.php\/2026\/04\/16\/tether-commits-127-5m-to-drift-protocol-post-hack-how-will-affected-users-get-paid\/","title":{"rendered":"Tether Commits $127.5M to Drift Protocol Post Hack: How Will Affected Users Get Paid?"},"content":{"rendered":"

The post Tether Commits $127.5M to Drift Protocol Post Hack: How Will Affected Users Get Paid?<\/a> appeared first on Coinpedia Fintech News<\/a><\/p>\n

Fifteen days ago, North Korean operatives drained $295 million from Drift Protocol in twelve minutes. Today, Drift published its first credible answer<\/a> for affected users – and the company backing it is Tether.<\/p>\n

In a recovery update published April 16, Drift announced a collaboration with Tether and other partners to address the $295 million in outstanding user losses. Tether is proposed to contribute up to $127.5 million. Additional partners will contribute up to $20 million. The structure includes a $100 million revenue-linked credit facility, an ecosystem grant, and loans to market makers.<\/p>\n

The gap between what is committed and what is owed is still $147.5 million. Users are betting on Drift’s future revenue to close it.<\/p>\n

Drift Protocol Recovery Token: How Affected Users Get Paid Back<\/strong><\/h2>\n

Drift will issue a dedicated recovery token to every user impacted by the April 1 exploit. The token is separate from the DRIFT governance token and represents a claim on the recovery pool. Critically, it is transferable – meaning users who cannot wait for the pool to fill can sell their claim.<\/p>\n

As stolen funds are recovered<\/a> through law enforcement and blockchain forensics work, those assets will also be added to the pool.<\/p>\n

Read More: If Smart Contracts Are Getting Safer, Why Is Crypto Still Losing $450M to Hacks?<\/a><\/strong><\/p>\n

Drift Drops USDC for USDT: The Real Message to Circle<\/strong><\/h2>\n

When Drift relaunches, it will settle in USDT instead of USDC.<\/p>\n

The timing is pointed. After the April 1 hack, Circle’s CEO cited a “moral quandary”<\/a> when asked why the company did not freeze the $71 million in stolen USDC as it was bridged from Solana to Ethereum. ZachXBT publicly called out the inaction. <\/p>\n

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1\/ Welcome to the Circle $USDC<\/a> files.<\/p>\n

$420M+ in alleged compliance failures since 2022, including fifteen cases of the US-regulated stablecoin issuer taking minimal action against illicit funds. pic.twitter.com\/OiWZz5MrVM<\/a><\/p>\n

— ZachXBT (@zachxbt) April 3, 2026<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

Now, Tether – whose own stablecoin was among the assets stolen in the hack – becomes Drift’s settlement layer and market-making backer at relaunch.<\/p>\n

No official statement has called it a rebuke. The decision speaks for itself.<\/p>\n

How Drift Is Rebuilding<\/strong> Itself<\/h2>\n

Drift is replacing its system.<\/p>\n

Two independent audits are required before relaunch: one from Ottersec, one from Asymmetric. A new community-governed multisig will replace the existing structure, with timelocks enforced on all critical administrative actions. Durable nonces, a key vector in the April 1 attack, are being disabled for all signers. All multisig signers will operate on dedicated signing devices.<\/p>\n

Every specific failure from April 1 is being addressed directly.<\/p>\n

The $295 million total loss breaks down across 19 asset types. JLP alone accounted for $159 million – more than half. USDC was second at $71 million.<\/p>\n

The insurance fund was unaffected. All insurance fund depositors’ assets remain intact and will be accessible at relaunch.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The post Tether Commits $127.5M to Drift Protocol Post Hack: How Will Affected Users Get Paid? appeared first on Coinpedia Fintech News Fifteen days…<\/p>\n","protected":false},"author":1,"featured_media":143506,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-143505","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"_links":{"self":[{"href":"https:\/\/daddyofincome.com\/index.php\/wp-json\/wp\/v2\/posts\/143505","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/daddyofincome.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/daddyofincome.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/daddyofincome.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/daddyofincome.com\/index.php\/wp-json\/wp\/v2\/comments?post=143505"}],"version-history":[{"count":0,"href":"https:\/\/daddyofincome.com\/index.php\/wp-json\/wp\/v2\/posts\/143505\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/daddyofincome.com\/index.php\/wp-json\/wp\/v2\/media\/143506"}],"wp:attachment":[{"href":"https:\/\/daddyofincome.com\/index.php\/wp-json\/wp\/v2\/media?parent=143505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/daddyofincome.com\/index.php\/wp-json\/wp\/v2\/categories?post=143505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/daddyofincome.com\/index.php\/wp-json\/wp\/v2\/tags?post=143505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}