Circle Faces Lawsuit Over $280M Drift Protocol Hack Freeze Failure

TLDR:

• Class action alleges Circle allowed USDC flows after Drift Protocol $280M exploit on Solana
• Filing claims attackers moved $230M via USDC and CCTP bridge without intervention for hours
• Drift Protocol halted trading after exploit while ecosystem actors froze portions of stolen assets
• Hackers routed funds from Solana to Ethereum, using bridges and swaps to obscure transaction trails

A class action lawsuit filed in Oakland has targeted Circle Internet Financial over its role in a major crypto exploit. 

The case stems from the April 1, 2026 Drift Protocol hack that drained roughly $280 million in digital assets. Plaintiffs claim attackers moved about $230 million through USDC and Circle’s CCTP bridge without any effective intervention. 

The filing seeks damages for affected investors and raises questions about whether frozen funds could have limited losses.

Circle Sued Over Drift Protocol Hack Allegations Over USDC Freeze Response

Gibbs Mura, A Law Group, filed the class action on April 14, 2026 representing Drift Protocol investors. 

The complaint positions Circle Internet Financial and Circle Internet Group as defendants in a case tied to one of the largest crypto exploits recorded in 2026 on the Solana network. Moreover, the filing focuses on how stablecoin infrastructure handled transaction flows during the aftermath of the breach.

The lawsuit states that within an hour of the hack, crypto users on X flagged the incident widely. Several market participants urged immediate intervention as stolen funds began moving across chains. 

According to the filing, some ecosystem operators froze portions of the assets while activity continued through Circle’s USDC infrastructure.

Investigators referenced in the complaint describe the attackers as potentially linked to North Korea. The assets were routed from Solana to Ethereum in an effort to reduce traceability. 

Once on Ethereum, funds were converted into Ether and moved through multiple decentralized applications.

Plaintiffs argue Circle had visibility into the ongoing movement of stolen assets. 

The complaint claims the company retained the technical ability to restrict or freeze USDC-related flows. Despite that capability, the filing alleges no effective disruption occurred during the key offloading window.

Drift Protocol $280M Exploit and CCTP Bridge Scrutiny

On April 1, attackers reportedly seized control of Drift Protocol’s asset transfer systems in roughly 12 minutes. 

The breach enabled rapid draining of funds across multiple wallets. It marked one of the most significant DeFi security incidents of the year on Solana.

After the initial theft, attackers shifted assets from Solana to Ethereum. 

The move aimed to complicate tracking and delay recovery efforts. On Ethereum, funds were converted into Ether and distributed through multiple applications.

The complaint highlights an eight-hour offloading phase involving USDC and Circle’s Cross-Chain Transfer Protocol. 

Roughly $230 million moved during this window, according to the filing. Plaintiffs argue monitoring systems should have flagged or restricted the flows during active exploitation.

Drift Protocol halted all trading immediately after detecting the breach. The team also issued alerts to users and froze platform activity. 

Some ecosystem participants also restricted portions of the stolen funds, but Circle allegedly continued processing related transactions.

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