Law firm charges Circle Internet Financial with failing to freeze $230 million in stolen USDC after the April 1 Drift Protocol exploit, allegedly linked to North Korean attackers.
A class action lawsuit was filed on April 14, 2026, by Gibbs Mura, A Law Group on behalf of Drift Protocol investors who lost funds in the $280 million April 1 hack. The lawsuit alleges that Circle Internet Financial knowingly permitted attackers—reportedly tied to North Korea’s government—to offload $230 million in stolen funds using Circle’s USDC stablecoin and CCTP bridge infrastructure over eight hours without freezing the assets, despite having the technical and contractual authority to do so.
The Drift Protocol exploit, executed via pre-signed administrative transactions on Solana, caused total value locked to collapse from $550 million to under $250 million and triggered indirect losses across at least 20 additional DeFi protocols. Blockchain analytics firm Elliptic linked the attack to North Korean state-sponsored actors. The lawsuit claims Circle has accumulated over $420 million in alleged compliance failures by repeatedly allowing unrestricted use of its stablecoin and bridge services during large breaches involving misappropriated funds.
Sources: Gibbs Mura, A Law Group
This article was generated automatically by The Defiant’s AI news system from publicly available sources.