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Industry

Drift Protocol Exploited for Over $270M, Token Crashes Over 20%

On-chain analytics from Lookonchain show the hacker used the wallet “HkGz4k” to move the funds in multiple transactions.

Written By Iyiola Adrian
Fact Checked by Jahnu Jagtap
Published April 2, 2026 1:55 AM·Updated 5 months ago
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Drift Protocol Exploited for Over $270M, Token Crashes Over 20%

Key Highlights

  • Drift Protocol lost over $270 million in a suspected exploit, with funds moved through a hacker wallet.
  • The stolen assets included more than 11 types of tokens, which were moved across blockchains to obscure their trail.
  • The DRIFT token fell over 20% after the exploit, and users were warned not to deposit funds while the investigation continues.

Drift Protocol, a leading decentralized exchange (DEX) built on the Solana blockchain, has reportedly been exploited, with over $270 million in assets moved from its vaults.

The exploit, which occurred on Wednesday, appears to have taken advantage of vulnerabilities in the protocol’s vaults. According to blockchain investigator Lookonchain, which flagged the activity, the hacker transferred the stolen funds through a wallet with the tag “HkGz4k,” using several coordinated transactions. 

Drift Protocol appears to have been exploited, with over $270M in assets suspiciously transferred to wallet HkGz4K. 🚨

That's crazy!https://t.co/iWVPzvDDhx pic.twitter.com/AQCa5q4b3M

— Lookonchain (@lookonchain) April 1, 2026

The attacker initially bought 41.72 million Jupiter Liquidity Pool (JLP) tokens worth $155.62 million, then converted large amounts of USDC and other tokens before bridging the funds to Ethereum to purchase 19,913 ETH, worth approximately $42.6 million.

Altogether, on-chain data shows that the hacker carried out around 11 transactions, including 51.616 million USDC worth $51.62 million, 125,000 WSOL worth $10.45 million, and 164,349 cbBTC worth $11.29 million. Within minutes, the vault’s total assets dropped from $309 million to $41 million.

Mert Mumtaz, CEO of Solana developer platform Helius, also warned traders of the potential exploit and advised them to mind their positions.

not 100% fully certain yet, but it seems drift might be getting exploited

monitor your positions https://t.co/xaHqJNDHg2

— mert (@mert) April 1, 2026

Drift confirms the attack

The firm has confirmed the exploit and suspended all transactions. According to the team, it has teamed up with “multiple security firms, bridges, and exchanges to contain the incident.”

“This is not an April Fools joke. We’ll provide additional updates from this account as more information is available to share,” the team added. 

Drift Protocol is experiencing an active attack. Deposits and withdrawals have been suspended. We are coordinating with multiple security firms, bridges, and exchanges to contain the incident. This is not an April Fools joke. We’ll provide additional updates from this account as… https://t.co/03SRPq4fHj

— Drift (@DriftProtocol) April 1, 2026

DRIFT token crashes after the attack 

As a result, the platform’s native token has been affected. According to data from CoinMarketCap, shortly after the news, DRIFT dropped sharply from a high of $0.071. The token is down over 20% at the time of writing, and price action suggests the downtrend may continue.

Drift Protocol token drops amid the attack
Drift Protocol token drops amid the attack | Source: CoinMarketCap

Trading activity has increased by 198% to about $22.15 million, but current price trends suggest that much of this activity is driven by selling pressure. At the same time, the market cap has dropped by 19% and now stands at $31.27 million.

Exploit attacks keep piling up in 2026

This incident adds to a growing list of recent exploits. Just hours earlier, blockchain security firm PeckShield flagged a $950,000 exploit targeting the LML staking protocol on Binance Smart Chain. This led to the protocol’s native token crashing by over 99.66% in hours. The attack literally obliterated the value as it dropped down to $0.1758.

Just last month, DBXen staking lost $150,000 due to a meta-transaction bug. In addition, Venus Protocol also lost $3.7 million in an oracle manipulation attack, which left it with a very bad debt. Many of these attacks follow the same pattern, which involves flash loans, manipulating token prices, or moving funds across tokens and blockchains to hide stolen money.

This increase in attacks on crypto platforms highlights a high risk where security weaknesses can quickly lead to large financial losses for both the platform and its users.

Also Read: Crypto Hacks Stole $52M in March Amid “Shadow Contagion” Threat: PeckShield

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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