04/18/2026
Circle Faces Legal Pressure Over $280M Drift Protocol Hack
Circle was hit with a class action lawsuit alleging the company failed to quickly freeze $280 million in stolen USDC following the Drift protocol exploit.
What happened: Circle was hit with a class action lawsuit alleging the company failed to quickly freeze $280 million in stolen USDC following the Drift protocol exploit. Law firm Gibbs Mura filed the suit claiming Circle's delayed response enabled further damage.
Why it matters: This lawsuit tests the boundaries of stablecoin issuer responsibility during DeFi hacks. If Circle is found liable for not acting fast enough to freeze stolen funds, it could set precedent requiring faster response times and more proactive monitoring of DeFi protocols using USDC.
Source: The Block