ZachXBT Slams Circle Over Drift Hack Inaction

What happened

I watched as ZachXBT blasted Circle for being totally asleep while thieves took 280 million dollars. You need to realize that Jeremy Allaire faced massive heat because he did nothing as the money moved across chains. My research shows that nearly 100 bridge transactions went through without any single freeze from the issuer. This guy let the hacker jump from Solana to Ethereum over several hours and I find that lazy.

ZachXBT’s accusations

I see that Zach pointed out how Circle froze 16 business accounts in the past but they stopped helping now. You should look at his posts where he calls the firm and their boss bad actors for their total lack of care. The way they act changes all the time and I believe this makes the whole crypto world look bad. I think his claims about their incompetence are totally right based on the facts.

The Drift Protocol hack

I found out that this hack used social engineering and tricks with something called durable nonces instead of bad code. You must keep your multisig safe since the attacker tricked two out of five people to get inside. The stealing started in early March and then the final big breach happened on April 1. My notes show they moved assets on March 27 and March 30 before the whole thing broke.

How the breach unfolded

I noticed a small test transaction started the whole mess and then the thief put in a fake asset. You should check your admin logs because the attacker took away all withdrawal limits to steal faster. This malicious move let them take huge amounts of money in a very short time. I saw how the attacker used an admin transfer to grab the funds once the fake asset was there.

Drift’s response

I watched the Drift team stop the protocol and throw away the bad key once they saw the theft. You can see they reached out to security experts and the police to try and get the cash back. They talked to big exchanges right away so the hacker could not sell the tokens easily.

Debate on stablecoin issuer duties

I hear many people say Circle must freeze stolen USDC right when it happens to save the money. You might worry about big companies having too much power if they can stop any transaction they want. The fight over this topic is getting very loud and I think Circle will have to answer soon. Some folks think a freeze helps victims but others say it ruins the point of crypto.

Conclusion

I conclude that simple human mistakes ruined the security here and you should take this as a big warning. The words from ZachXBT might force Circle to act faster next time a big hack happens. I hope we see better safety steps in the future so your money stays where it belongs.