Circle Accused of Incompetence in Drift Protocol Hack

A recent hack on the Drift Protocol, a Solana-based DeFi application, resulted in the loss of approximately $285 million in cryptocurrency. The stolen funds included USDC stablecoins, which were bridged from Solana to Ethereum via CCTP.

Circle, the issuer of the USDC stablecoin, has faced criticism for its handling of the situation. According to blockchain investigator ZachXBT, Circle had six hours to freeze the stolen funds but failed to do so. This delay allowed more than 100 transactions to occur before action was taken.

ZachXBT accused Circle and its CEO, Jeremy Allaire, of being 'bad actors' in the industry. He claimed that Circle uses buzzwords like 'compliance' and 'regulated' without implementing actual security measures.