Circle Faces Class Action Lawsuit Over Alleged Inaction in $280 Million Drift Protocol Exploit

Law firm Gibbs Mura filed a class action lawsuit against Circle Internet Financial over the company's alleged failure to freeze stolen USDC following the April 2026 Drift Protocol exploit that resulted in $280 million in stolen funds. The lawsuit accuses Circle of negligence and aiding and abetting the conversion of stolen funds by not acting swiftly to freeze the compromised stablecoin. Circle allegedly had the technical capability to freeze the stolen USDC but did not exercise that authority.

Circle's Alleged Failure to Freeze Stolen Funds

• ▪Circle did not freeze funds stolen from the Drift Protocol in April 2026.

Class Action Lawsuit and Legal Claims

• ▪Circle was accused of negligence related to the Drift Protocol exploit.
• ▪Circle was accused of aiding and abetting the conversion of stolen funds from the Drift Protocol.
• ▪Stablecoin issuer Circle faces a class action lawsuit over the Drift Protocol hack.

The Drift Protocol Exploit Details

• ▪The Drift Protocol hack occurred in April 2026.
• ▪The Drift Protocol exploit resulted in $280 million in stolen funds.

Perspective of Gibbs Mura

• ▪Gibbs Mura accuses Circle Internet Financial of being negligent in its response to the Drift Protocol exploit.
• ▪Gibbs Mura alleges Circle Internet Financial failed to act swiftly to freeze stolen USDC tied to the Drift Protocol hack.

Perspective of Circle Internet Financial

• ▪Circle Internet Financial is accused of having the ability to freeze stolen USDC but declining to do so after the Drift Protocol hack.

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