Drift protocol (DRIFT)

Wu reports that according to Onchain Lens monitoring, since the recent hacker attack, a wallet address associated with the Drift Protocol team has deposited 56.25 million DRIFT into Bybit and Gate exchanges, worth about $2.44 million. https://t.co/kYweBc7VWi

Wu said he learned, according to Ember monitoring, that after the $285 million theft at Drift Protocol, FTX/Alameda sold 6.94 million DRIFT (about $320,000) via Wintermute a few hours ago. Alameda was an investor in the protocol; the 8.33 million tokens it unlocked a year ago were once valued at $6.22 million, but have now shrunk dramatically to $380,000. DRIFT is the governance token of a Solana‑ecosystem derivatives DEX. https://t.co/ylhCTJ37PN

Wu said he learned, according to Ash monitoring, that after the $285 million theft in the Drift Protocol, FTX/Alameda sold 6.94 million DRIFT (about $320,000) through Wintermute a few hours ago. Alameda was an investor in the protocol; the 8.33 million tokens it unlocked a year ago were once worth $6.22 million, now severely diluted to $380,000. DRIFT is the governance token of the Solana ecosystem derivatives DEX. https://t.co/ylhCTJ37PN

are we back?? https://t.co/kage8inHBZ

The $DRIFT exploit is a grim reminder that no TVL is ever 100% safe. Seeing over $270M leave the treasuries in under an hour is pure madness. The $DRIFT token is already nuking and liquidity is drying up fast. This looks like a classic admin key compromise rather than a code bug. Are we seeing a rotation out of $SOL ecosystem coins because of this?

Imagine having your project and getting hacked for over $100M on April 1st. You try to inform your community about the situation and the actions to take. They read it and think it's an April Fool's joke 😹. That's what happened to the Drift protocol on Solana.

I went through Drift’s incident thread, and this is the clearest play by play of what happened to @DriftProtocol ↓ March 23 The setup appears to have started here. Drift says 4 durable nonce accounts were created. That suggests parts of the attack were prepared in advance. Drift’s implication → At least 2 of 5 signer approvals were already tied to the setup March 27 Drift says the Security Council multisig was updated because one council member was replaced. It did not explain why. But the change did not fully remove the attacker’s path. March 30 A new durable nonce account was created for someone in the updated multisig. That suggests the attacker still had effective access to 2 of the 5 required signers. April 1 Drift spotted unusual activity. Users were told not to deposit. Deposits and withdrawals were suspended shortly after. Later that day, Drift says there was a legitimate-looking test withdrawal from the insurance fund. About a minute later, 2 pre-signed durable nonce transactions were executed. Those transactions created and approved a malicious admin transfer. After that, the attacker gained control of Drift’s Security Council admin powers. With that control, the attacker added a malicious asset, removed withdrawal limits, and drained the protocol. Around $280M was withdrawn from: borrow/lend deposits, vault deposits, and trading deposits. Drift says this was not a smart contract bug and there is no evidence of compromised seed phrases. Their response: → Freeze the remaining protocol functions → Remove the compromised wallet from the multisig → Work with security firms, bridges, exchanges, and law enforcement From the looks of it. I'm thinking that this might be an inside job.

More crazy to watch $DRIFT price to TVL over the past year. Signs were there. https://t.co/DIA7HrMSti https://t.co/aeMQfN1Hza

🚨 The Drift Protocol hack exemplifies the real risks of decentralized protocols. When a trading platform is breached for billions of dollars, users lose their money directly because smart contracts do not have a “stop button”. ⚠️ The basic lesson: security audits and insurance are not optional but essential before depositing capital. #اختراق_البلوكتشين #DeX_Security #الأمان_الرقمي #DriftProtocol #العملات_الرقمية #Crypto_Hack #Web3_Safety