Circle Faces Class Action Lawsuit Over Drift Protocol Hack Handling

Circle Internet Group is facing a class action lawsuit over its handling of a recent $280 million hack on the Drift Protocol. The lawsuit, filed by Drift investor Joshua McCollum on behalf of over 100 members, alleges that Circle failed to freeze funds stolen from the protocol in a timely manner.

The lawsuit claims that Circle allowed the attackers to transfer about $230 million worth of USDC from Solana to Ethereum via its Cross-Chain Transfer Protocol (CCTP) without intervention. This raises questions about the accountability of cryptocurrency companies in cases of hacking and exploitation.