Investors filed a class-action lawsuit against Circle after the Drift Protocol exploit, which allowed hackers to withdraw more than $230 million in USDC.

Allegations in the lawsuit

Plaintiffs claim Circle failed to freeze or otherwise block the stolen funds despite allegedly having the means to intervene during the incident.

Timeline reported by ZachXBT

According to ZachXBT, Circle had approximately 6 hours while withdrawals took place, a window plaintiffs say could have been used to suspend transactions.

About USDC and legal context

USDC is a dollar-pegged stablecoin issued by Circle and used for settlements across cryptocurrency markets; the suit seeks damages on behalf of affected investors.

Court filings cited by the plaintiffs form the basis of the complaint; further procedural details and responses from Circle were not included in the cited report.