Drift Unveils Up to $150 Million Recovery Plan for Hack Victims With Tether Support

Drift, a Solana-based decentralized finance protocol, is pursuing a recovery plan of up to $150 million for users affected by a recent hack.

Drift said on its website on June 16 that it had begun a parallel investigation into the hack earlier this month with authorities and outside forensic firms. It also announced plans to compensate affected users.

The proposal centers on the creation of a Recovery Pool. Drift is considering a funding plan with Tether and other partners to support users hit by the hack. Under the plan, Tether would provide as much as $127.5 million, while other partners would contribute up to $20 million.

In the initial stage, part of Drift's revenue and funds from the Recovery Pool would be used to support affected users. Drift plans to gradually cover $295 million in user losses in line with growth in its revenue.

The protocol is also tracing assets stolen in the hack. Any funds recovered through cooperation with authorities and other parties will be directed in full to the Recovery Pool.

Affected users will also receive separate recovery tokens. The tokens will be issued independently of the existing Drift token and will be transferable. Drift said details of the token will be disclosed later.