Circle Responds to Drift Theft Incident, Calls for Enhanced Accountability and Rule of Law in Open Financial Systems

Circle Chief Strategy Officer Dante Disparte responded to the major security breach affecting Drift Protocol on April 1, which resulted in over $270 million in stolen funds. He stated that open financial systems must be built upon foundations of legal accountability, shared security, and rules that evolve in real time with emerging threats. Circle freezes USDC funds only when legally required—a measure reflecting its compliance obligations and safeguarding users’ assets and privacy rights. He emphasized that openness and accountability must be balanced, and all participants across the ecosystem—including protocols, wallets, infrastructure providers, exchanges, and stablecoin issuers—must jointly shoulder responsibility for security and accountability. Circle is collaborating with U.S. and international policymakers to advance stablecoin legislation, including the GENIUS Act, to establish a more modern legal framework enabling lawful, rapid intervention against illicit activities while protecting property rights and privacy—ensuring the continued resilience and robust growth of open financial systems.