Tether leads $150M Drift Protocol rescue after $280M hack

- Tether commits $127.5 million to revive Drift Protocol after $280 million hack, prompting industry shift - Drift Protocol adopts USDT as settlement asset, boosting Tether’s position against Circle On April 16, 2026, Cointelegraph reported that Tether had committed $127.5 million to support Drift Protocol’s recovery after a $280 million hack. According to Cointelegraph on April 16, 2026, the $150 million recovery initiative also includes contributions from undisclosed partners. As part of the plan, Drift Protocol will relaunch using Tether’s USDT token exclusively as its settlement asset, replacing Circle’s USDC. This shift marks a significant change in the stablecoin landscape and highlights Tether’s growing influence, while also underscoring new approaches to recovery after major DeFi attacks. According to Cointelegraph on April 16, 2026, the partnership structure links user fund restoration to ongoing platform activity and does not rely on a single upfront capital infusion. Following the exploit, Circle faced criticism for not freezing $232 million in stolen USDC, and attackers reportedly moved these funds across chains within a six-hour window. As a result, Circle’s stock initially dropped by about 10% but then rebounded with a 20% gain the following week, illustrating heightened industry focus on coordinated post-hack recovery and intensifying competition between Tether and Circle. According to market data cited by Cointelegraph on April 16, 2026, Tether USDt (USDT) was trading at $1, up 0.012% in 24-hour volume, while USDC was also trading at $1, with a 0.019% increase in 24-hour trading volume.