Drift Unveils Recovery Plan for $295 Million Security Incident

Odaily Odaily reported that Drift Protocol has announced a user recovery plan for the approximately $295 million security vulnerability incident on April 1, which has been attributed to a North Korean-backed hacker group. Under the plan, Drift will issue receipt tokens representing users' verified losses, with each token corresponding to $1 in losses. Holders can gradually redeem their tokens based on the funds available in the recovery pool.

Currently, the initial funding for the recovery pool is approximately $3.8 million. Subsequent funding sources include up to $127.5 million from exchange revenue, support funds from Tether, and up to $20 million from partners, aiming to cover the total loss of approximately $295.4 million. Drift has frozen approximately $3.36 million in USDC and established a public bounty program offering 10% of any recovered assets. The exchange is expected to relaunch in the second quarter in a "safety-first" mode. (CoinDesk)