What happened to Drift Protocol and how big was the hack?

Drift Protocol suffered a $295 million exploit on April 1, forcing the Solana-based exchange to halt trading and borrowing. The attack was linked to a North Korean-affiliated threat group, according to forensic firm Mandiant. This makes it one of the larger DeFi hacks in recent months.

How does Drift Protocol plan to repay users after the hack?

Drift plans to issue “recovery tokens” to affected users, with each token representing $1 of verified loss. These tokens can be redeemed as funds become available in a recovery pool. The model spreads repayments over time rather than immediate full reimbursement.

Where will the recovery funds come from?

The recovery pool will be funded by Drift’s remaining assets, future exchange revenue, and external support. Tether has committed up to $127.5 million, with an additional $20 million pledged by partners. This backing is critical to closing the gap toward the full $295 million loss.

When can users start getting their money back?

Users can begin redeeming recovery tokens once the pool exceeds $5 million. However, early redemption means giving up any future upside from additional recoveries. This creates a trade-off between immediate liquidity and potentially higher long-term payouts.

How much of the stolen crypto has been recovered or frozen?

Drift said a significant portion of the stolen funds remains traceable across wallets. Some assets have been frozen or delayed, including stablecoins held by Circle. This improves the chances of partial recovery but does not guarantee full restitution.

How might this recovery plan affect investor confidence in Drift?

The structured repayment plan and backing from major players like Tether could help restore some trust. However, confidence will depend on execution, transparency, and how quickly users are repaid. The hack itself remains a major reputational hit.

What security changes is Drift making after the hack?

Drift plans to relaunch with new smart contracts, fully rotated keys, and improved safeguards like removing the exploit pathway used in the attack. These upgrades aim to reduce future vulnerabilities. Security improvements will be key to attracting users back.

When is Drift Protocol expected to relaunch?

The platform is targeting a relaunch in Q2 2026. It plans to return as a more focused, security-first perpetual futures exchange. Timing could shift depending on recovery progress and system readiness.

Drift plans token payout after $295M hack

Written by Jon CuthbertPublished May. 6 2026Last Updated May. 7 2026

Drift Protocol said it will issue recovery tokens to users after a $295 million hack linked to North Korean actors, outlining a plan to fully compensate victims.

The Solana-based exchange said each recovery token will represent $1 of verified loss, with payouts funded through remaining assets, future revenue and external backing including Tether.

“The Drift team is taking considered measures to ensure that users are made whole, and that Drift restores itself as the leading perpetuals DEX on Solana,”

Said Drift Protocol.

The exploit on April 1 forced the platform to halt trading and borrowing, with forensic firm Mandiant linking the attack to a North Korean state-affiliated threat group.

Drift said a large portion of stolen funds remains traceable, with assets frozen or delayed across wallets, bridges and stablecoin issuers including Circle.

The recovery pool will be seeded with roughly $3.8 million in assets and supported by up to $127.5 million from Tether and $20 million from partners, with redemptions starting once the pool exceeds $5 million.

The platform plans to relaunch in Q2 2026 with upgraded security, including new smart contracts, rotated keys and a focus on perpetual futures trading.

At the time of reporting, Solana price was $86.38.