Circle Responds to Drift Protocol Hack, Calls for Accountability in Open Finance

Circle’s Chief Strategy Officer, Dante Disparte, responded to the major security breach on April 1 at Drift Protocol, which resulted in over $270 million in stolen funds. He stated that open finance systems must be built on a foundation of legal accountability, shared security, and rules that evolve in tandem with emerging threats. Circle’s freezing of USDC funds was carried out solely in compliance with legal requirements, reflecting its obligation to uphold regulatory standards and safeguard users’ assets and privacy rights. He emphasized that openness must be balanced with accountability, and that all participants in the ecosystem—including protocols, wallets, infrastructure providers, exchanges, and stablecoin issuers—must jointly bear 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 that enables lawful, rapid intervention against illicit activity while protecting property rights and privacy, ensuring the continued resilience of the open finance system.