Circle faces class-action lawsuit for failing to freeze funds stolen from Drift.

CoinFeed reported on April 17th that, according to Cointelegraph, stablecoin issuer Circle is facing a class-action lawsuit due to a security vulnerability in the Drift Protocol. A Drift investor representing over 100 members filed a lawsuit in Massachusetts federal court, accusing Circle of allowing attackers to transfer approximately $230 million in USDC from Solana to Ethereum within hours during the April 1st theft of approximately $280 million from the Drift Protocol without intervention. The complaint alleges that Circle aided and abetted the asset conversion and acted negligently. The plaintiffs' lawyers pointed out that Circle had frozen 16 USDC wallets in a sealing-off civil case about a week before the Drift incident, demonstrating its technical capabilities.