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Drift proposes recovery tokens after $295 million April hack
Drift says users would receive recovery tokens tied to a recovery pool funded by protocol revenue, which it estimates could take nearly eight years to reach the full $295 million recovery amount at 2025 revenue levels.
DeFi derivatives exchange Drift has proposed a recovery plan after a $295 million hack in April that forced it to suspend trading and other activity, with victims set to receive “recovery tokens” tied to a recovery pool, according to DL News.
The plan, posted on Drift’s website, would funnel protocol revenue to users and includes claims that are proportional to the amount each user lost. Drift also says the recovery pool would be supplemented by crypto committed by Tether and other organizations that offered help after the incident.
The exchange’s proposal would require approval from Drift tokenholders. Drift’s update also notes the hack stemmed from attackers tricking administrators into approving bogus transactions, and blockchain analysts have said North Korea was likely behind it.
DL News also reports Drift generated $19 million in revenue in 2025, and at that pace it could take nearly eight years for the recovery pool to reach $295 million, assuming partner commitments are honored. Drift says its recovery approach depends on the outcome of a “slimmed-down business model.”