Overview
- A proposed class action in Massachusetts federal court, led by Drift investor Joshua McCollum, says Circle let attackers move about $230 million in USDC for hours after the April 1 exploit using Circle’s cross-chain transfer tool (CCTP).
- Plaintiffs argue Circle had both the technical ability and contractual authority to freeze tokens and point to Circle freezing 16 wallets in a separate civil matter days earlier.
- Circle says it freezes assets only when directed by law enforcement or a court, and executives warn that acting unilaterally would give a private company arbitrary power over users’ money.
- Blockchain analysts traced more than 100 transfers during U.S. business hours, linked activity to suspected North Korean actors, and reported that funds were converted on Ethereum and routed through Tornado Cash to obscure the trail.
- Drift halted deposits and withdrawals during the attack and is pursuing a recovery plan that includes up to $127.5 million from Tether, a shift to USDT as the main settlement asset, and revenue-linked support for affected users.