Circle is facing a class action lawsuit over stolen funds from the Drift Protocol due to not freezing them

According to Cointelegraph, stablecoin issuer Circle is facing a class-action lawsuit in the U.S. District Court for the District of Massachusetts for failing to freeze the stolen funds from the Drift Protocol during the attack incident.

The plaintiffs claim that the attacker transferred approximately $230 million USDC from Solana to Ethereum within hours using Circle's Cross-Chain Transfer Protocol (CCTP), and Circle did not intervene. The lawsuit accuses Circle of complicity and incitement to misappropriation and negligence. Crypto analytics firm Elliptic previously suspected that the attack may be related to North Korean-backed hackers, and the related funds were subsequently exchanged for ETH and transferred via Tornado Cash.