The post Drift Exploit Sees USDC Bridged via Circle’s CCTP for Hours appeared on BitcoinEthereumNews.com. Drift exploit drained up to $285M as TVL fell from $311The post Drift Exploit Sees USDC Bridged via Circle’s CCTP for Hours appeared on BitcoinEthereumNews.com. Drift exploit drained up to $285M as TVL fell from $311

Drift Exploit Sees USDC Bridged via Circle’s CCTP for Hours

2026/04/02 21:12
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  • Drift exploit drained up to $285M as TVL fell from $311.38M to $23.49M within hours.
  • USDC moved from Solana to Ethereum via CCTP with no pause or freeze.
  • Circle froze 16 wallets last week but took no action during the hack, as per ZachXBT.

A major exploit hit the Drift Protocol on April 1, 2026, during US business hours. The attack drained as much as $285 million, and the total value locked (TVL) dropped fast, from $311.38 million to $23.49 million, a 92.5% collapse in protocol liquidity within hours.

The attacker quickly consolidated and swapped assets into USDC and SOL, with the USDC then bridged to Ethereum via Circle’s CCTP over several hours.

On-chain investigator ZachXBT flagged the movement in real time. His claim was that Circle did not act.

CCTP Processes Transfers Without Resistance

CCTP works by burning USDC on the source chain and minting it on the destination chain. This system processed nine-figure flows tied to the exploit.

There was no pause, no freeze, and no manual review. ZachXBT stated that Circle did not detect or act on anything, pointing to a lack of monitoring at the protocol level.

The issue is not technical complexity, and the flows were large, rapid, and abnormal. They still passed. This highlights a gap, as cross-chain infrastructure processes transfers as intended but lacks enforcement mechanisms.

Prior Wallet Freezes Raise Questions

This stands in contrast to earlier actions, when Circle by mistake froze over 16 business-linked wallets. Those wallets are still in the process of being unfrozen.

While the issuer was the same, the actions taken were different. Market participants called out the mismatch. One noted that Circle could freeze internal wallets but failed to stop nine-figure exploit flows through CCTP.

The Drift exploit ran during active hours while monitoring teams were online. Still, no action, and market participants expressed disappointment.

Related: DeFi Hacks Top $137M in Early 2026 as Security Failures Mount

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

Source: https://coinedition.com/drift-exploit-sees-usdc-bridged-via-circles-cctp-for-hours-raising-oversight-concerns/

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