💥Circle Refuses to Freeze $230 Million Worth of Stolen USDC in Drift Protocol Hack

💥 CEO Jeremy Allaire Says “We Cannot Act Without a Legal Order”,

💥DeFi Security Debate Reaches its Peak!

Dear Gate Square readers,

As of April 2026, the crypto world is shaken by one of the biggest hacks in the Solana ecosystem. On April 1, 2026, $285 million worth of assets were stolen through a governance exploit of Drift Protocol. The hacker converted a large portion of the stolen assets into USDC, bridging approximately $230 million worth of USDC from Solana to Ethereum via Circle’s Cross-Chain Transfer Protocol (CCTP). However, Circle has officially refused to freeze the hacker’s wallets. The company stated that it could not act without a legal court order or law enforcement request, sending the message that "unilateral freezing creates a moral dilemma." This decision reignited the question of whether DeFi is "decentralized or regulated."

Circle CEO Jeremy Allaire and Chief Strategy Officer Dante Disparte clarified their policy in statements made over the past 48 hours: "The USDC freeze only occurs due to legal necessity. This is not a backdoor or arbitrary decision, but a requirement of the law." Critics, however, find Circle's inaction during the 6-hour bridging window "unacceptable."

Chronology and Technical Details of the Event
- April 1, 2026 Hack: The attacker targeted Drift's JLP Delta Neutral, SOL Super Staking, and BTC Super Staking vaults. A total of approximately $285 million in assets (JLP, USDC, SOL, cbBTC, etc.) were drained. The hacker rapidly converted USDC to USDC via Solana DEX aggregators. - Bridging Phase: Over $230 million worth of USDC was moved from Solana to Ethereum in over 100 transactions using Circle's CCTP. During this process, blockchain tracker ZachXBT accused Circle of "failing to intervene in real-time." - Circle's Stance: Although the company technically could blacklist, it did not act without legal authorization. It is criticized for "selective behavior" for previously freezing 16 wallets in civil lawsuits.

Circle's Defense and Appeals
Jeremy Allaire emphasized the "moral quandary," stating that "a private company freezing assets without a court order sets a dangerous precedent." Dante Disparte highlighted the following points in his blog post:
- Freezing is only done out of legal necessity. - Actions are taken within the legal framework, not under community pressure. - Calls for the rapid passage of GENIUS and CLARITY legislation by Congress and the development of "circuit breaker" mechanisms.

This stance is also being compared to Tether's faster response approach.

Impacts on the Market and DeFi
- Drift TVL Collapse: TVL, which was $550 million before the hack, fell below $250 million after the hack.
- USDC Reliability Debate: The "truly stable" nature of stablecoins is being questioned. While some investors are moving away from USDC, others find Circle's legal discipline "reassuring."
- North Korea Connection: Elliptic's analysis shows that their aggressive behavior overlaps with the DPRK (North Korea)-backed Lazarus group. This further strengthens calls for regulation.
- Broad Impact: Security measures (multi-sig improvements, timelocks) are being discussed within the Solana ecosystem and DeFi in general.

Risks and Considerations
- Reduced Chances of Recovery: Tracking and freezing have become more difficult as funds have been moved to Ethereum. - Trust Crisis: The role of centralized issuers like Circle in DeFi is being questioned; proponents of complete decentralization are saying "this is why self-custody is needed." - Legal and Regulatory Pressure: The incident could increase the urgency of stablecoin regulations.

As the Gate Square community, we are closely following this critical debate. Do you think Circle is right – or should issuers intervene faster in DeFi hacks? Will this decision increase or decrease trust in USDC? Share your opinions in the comments; let's be a voice together for a more secure ecosystem.
#Circle拒冻结Drift被盗USDC