Tether Freezes ₱20.88 billion ($344 million) Following Drift Protocol Hack
Tether froze ₱20.88 billion ($344 million) in USDT at the request of US law enforcement and OFAC following the ₱17 billion ($280 million) Drift Protocol exploit. The exploiter moved stolen funds across six consecutive hours, with over 232 million USDC bridged from Solana to Ethereum.
Key Takeaway
Tether's freeze power is real — Circle's inaction on the same exploit shows stark differences in compliance.
Tether froze ₱20.88 billion ($344 million) in USDT across two wallet addresses at the request of US law enforcement and the Office of Foreign Assets Control following the $280 million Drift Protocol exploit in early April.
The exploiter moved the stolen funds in over 100 transactions across six consecutive hours, bridging more than 232 million USDC from Solana to Ethereum. More than 10 additional DeFi protocols in the Solana ecosystem were indirectly impacted by the breach.
Tether CEO Paolo Ardoino defended the action, stating that when credible links to sanctioned entities or criminal networks are identified, the company acts immediately and decisively.
The freeze drew criticism from crypto media outlet Truth for The Commoner, which posted on social media that stablecoins are not truly yours. Onchain analyst ZachXBT also called out Circle for not freezing any USDC tied to the exploit, despite the large amount bridged to Ethereum.
Tether has worked with 340 agencies across 65 countries in more than 1,200 US law enforcement investigations. The company has frozen over $4.4 billion in assets total, with more than $2.1 billion tied to US cases. In February 2026, Tether assisted Turkish authorities in blocking over $500 million in stablecoins linked to illegal betting and money laundering.
This article was written based on reporting from NewsBTC.
