- Tether is supporting a recovery plan for the hacked Solana exchange Drift Protocol, which will switch its primary stablecoin from USDC to USDT.
- The move follows a $285 million hack allegedly by North Korean-linked actors, after which critics say Circle failed to freeze stolen USDC funds.
- A class action lawsuit has reportedly been filed against Circle, accusing it of permitting attackers to offload $230 million via its systems.
On April 16, 2026, stablecoin giant Tether announced its support for a recovery plan to assist the Solana-based Drift Protocol following a devastating $285 million hack on April 1. Consequently, the exchange will transition its core settlement asset from USDC to Tether’s USDT, aiming to bring over 128,000 users into USDT-based trading on Solana.
This strategic pivot is viewed as a masterclass bid for dominance on the Solana Blockchain. However, data shows USDC currently holds a market cap of $8.1 billion on Solana, which is 2.65 times larger than USDT’s $3.05 billion there. Meanwhile, the recovery plan is not a direct reimbursement but involves directing exchange fees and external funds into a recovery pool for affected users.
Blockchain investigator ZachXBT highlighted that Circle had six hours to freeze stolen funds but did not act. This failure has reportedly resulted in a class action suit against Circle, accusing the firm of knowingly permitting attackers to offload $230 million. Drift has also committed to using a new community-based multisignature wallet with enhanced security measures for all core assets.
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