distribution · May 21, 2026
Drift Protocol Says Insurance Fund Untouched After Attack; $147.5M Support Includes Tether Commitment
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Drift Protocol confirmed the Insurance Fund remained unaffected by the recent attack because the protocol paused before losses resolved through liquidation or bankruptcy paths. Stakers can withdraw shares once the protocol restores online with a 13-day cooldown period. Protocol-owned Insurance Fund assets will fund restart and user recovery. The April exploit drained approximately $285 million through social engineering on a compromised admin key. Recovery includes $147.5 million total support with $127.5 million from Tether and $20 million from partners; on-chain addresses for fund tracking will be disclosed publicly.
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