Tether Offers $127.5 Million for Drift Recovery

Tether has proposed contributing up to $127.5 million to Drift Protocol's recovery plan after an April 1 exploit drained more than $286 million from the Solana-based trading platform.

The proposed package, combined with $20 million from other partners, would provide nearly $150 million to support user recovery and Drift's relaunch.

Drift will shift its settlement asset from USD Coin (USDC) to Tether's USDT when it relaunches. The recovery framework also ties future platform revenue to efforts to restore user balances.

Drift said it is working with law enforcement and blockchain forensics teams to recover the stolen assets. A recovery token is planned for affected users, with each token representing a claim on the recovery pool.