Drift Secures $148 Million in Funding from Tether and Partners to Recover from Exploit

Following a recent exploit that resulted in the theft of over $270 million, Drift Protocol has announced plans to relaunch with Tether's USDT as its primary settlement layer, backed by a $147.5 million funding package from Tether and its partners. The deal comprises $127.5 million from Tether and $20 million from other partners, aiming to support user recovery and reboot the platform as a USDT-based perpetual futures exchange on Solana. The funding package includes a revenue-linked credit facility, ecosystem grants, and loans to market makers, with a portion of trading revenue allocated to a recovery pool to cover roughly $295 million in user losses over time. The exploit, linked to a North Korean group, led to a significant loss of value for Drift's governance token, DRIFT, which has plummeted by about 70% since the incident. Circle, the previous settlement layer provider, faced criticism for not freezing funds quickly enough, citing legal risks. In contrast, Tether has a history of freezing assets linked to hacks and illicit activities. As the largest decentralized perpetual futures exchange on Solana, Drift boasts over 175,000 users and a cumulative trading volume of approximately $150 billion. The platform's transition to USDT is seen as a strategic move in the intensifying stablecoin market, where competition is rising among exchanges, fintechs, and traditional financial institutions. With this new funding, Tether plans to support fee reductions, user incentives, and liquidity support for Drift's relaunch, solidifying USDT's position at the core of the trading infrastructure and paving the way for user fund restoration and operational resumption.