Circle Sued Over $230M Drift Hack, Allegedly Failed to Freeze Funds

Circle Internet Group faces a proposed class-action lawsuit for failing to freeze stolen funds during the 2026 Drift Protocol hack.

Attackers moved approximately $230 million in USDC through Circle’s Cross-Chain Transfer Protocol over several hours.

The complaint alleges Circle possessed the technical ability and contractual right to stop the transfers but failed to intervene.

Plaintiffs accuse the company of negligence and aiding unlawful conversion.

Timely action could have mitigated investor losses from the total $280 million exploit.

Drift Protocol subsequently announced it will move settlements from USDC to rival stablecoin USDT.