According to Drift Protocol’s official disclosure, all affected wallets will receive recovery tokens representing their verified losses and proportional claims against the recovery pool, with one recovery token equivalent to one dollar of verified loss. The initial funding of the recovery pool is approximately $3.8 million, consisting of the protocol’s remaining assets converted into USDT. The pool will be further replenished through a portion of the exchange’s quarterly net revenues, partner contributions, and up to $127.5 million in matching funds from Tether. Once the recovery pool exceeds $50 million in size, users may begin redeeming their tokens, with redemption prices calculated as the value of the recovery fund divided by the outstanding supply of recovery tokens. Drift stated that the insurance fund was unaffected by the attack, and any release of related funds requires approval via a governance proposal and DAO vote. The exchange plans to relaunch in the second quarter of 2026, focusing primarily on perpetual contracts and selected markets. It will implement new programs and addresses, rotate keys, restructure the community multisig, remove durable nonces and the Earn product, and upgrade operational security.
Drift Announces Recovery Plan for the April 1 Attack, to Issue Recovery Tokens and Restart Exchange in Q2 2026
TechFlowShare
Summary
Drift Protocol has outlined a recovery plan following the April 1 exchange hack, issuing recovery tokens for verified losses. Each token is worth $1 and is backed by a $3.8 million recovery pool in USDT. Additional funds will be sourced from quarterly revenue, partners, and up to $127.5 million from Tether. Redemption begins once the pool reaches $5 million. The insurance fund remains untouched. Drift plans to relaunch in Q2 2026 with enhanced security measures and new protocols. This update provides fresh news on recovery efforts and relaunch plans for the crypto exchange.
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