Drift compensates victims of the $295.4 million hack with DFX tokens
Drift, now renamed Velocity, opened claims proceedings on October 1st for victims of the cyberattack that caused verified losses of up to $295 million on the platform.
10/5/20264 min read
DFX is a type of claim.
The structure is more important than the ratio stated in the title. DFX is not a paid-up claim. It is a perpetual claim, with a fixed supply on a fund that is expected to continue growing until it matches the full loss. Each token allows the holder to receive a share proportional to the amount currently in the fund at the time they redeem. Redeeming today will convert a $1 claim into approximately 1 cent and eliminate that claim. Holding will preserve the entire $1 claim against a fund that could be significantly larger later.
Therefore, victims face a decision, not a payment. Exchange now and accept 1% as the final amount, or hold a token whose ultimate value depends on the fulfillment of commitments. Velocity generates revenue and the stolen assets are recovered. The token burning clause creates a point of contention that benefits patient claimants. If unclaimed DFX is canceled on January 1, 2028, while the fund continues to grow, each remaining token will represent a larger share. Victims who never claim will indirectly subsidize those who do.
A token trading at approximately three times its immediate face value means buyers expect the fund to rise enough to justify paying today's premium. It also means the market is pricing in a potential recovery of around 3% of face value, rather than the 50% promised if fully realized.
There are two caveats. Liquidity of around $200,000 against a nominal required fund of $295.4 million is quite thin, so the price reflects a small number of participants rather than market consensus, and a 210% one-day increase at that level of liquidity is closer to noise than a signal. Some of the buys may be more speculative than analytical. However, the direction remains consistent with the fund's structure. Commitments aimed at bringing the recovery to 50% are made in stages, are limited and conditional, and none of those commitments were on the list on launch day.
Where will the remaining funds come from?
Four sources are expected to fill the gap ranging from $3.11 million to $295.4 million. Tether has committed to contributing up to $127.5 million USDT, disbursed in phases and tied to performance milestones, with support extending until January 2028. This commitment represents 43% of the total shortfall, and this is the biggest reason to believe that recovery could exceed current market prices. This also depends on Velocity achieving its targets, meaning that the recovery of victims' funds depends on the commercial success of the exchange that lost their money.
Strategic partners have committed to contributing an additional $20 million. These two sources together account for approximately half of the lost funds. Velocity's net revenue from the protocol contributes consistently. The scale of that contribution can be estimated from history: Drift earned $19 million in revenue in 2025. Even if Velocity reached that figure and contributed a significant portion, calculating the $295 million shortfall would still take years.
The recovered assets are from the fourth and most uncertain source. Circle froze approximately 3.36 million USDC immediately after the attack, and another 9.2 million USD was frozen in August after investigators traced the attacker's activity through Tornado Cash. The majority, 130,259 ETH, worth approximately 293 million USD at the time the recovery plan was implemented, is scattered across four tracked and flagged Ethereum wallets on exchanges, with two delayed transfers via the Wormhole Bridge.
The flagged funds were not recovered. The attack is believed to have been carried out by a group linked to North Korea, and these operations typically move stolen funds over years through mixers and intermediaries instead of leaving them untouched. This year's Coldcard incident shows a similar pattern, with 82% of stolen Bitcoin remaining at their original addresses more than five weeks after recovery efforts ended.
Assessment and Conclusion
Six months passed from the time of the attack until the victim received their first dollar, and that first dollar was just a cent. For DeFi users, the lesson learned is that a publicly announced recovery plan isn't always a real recovery. Drift's plan was announced in May with an initial commitment of $147.5 million, and the actual amount available when the portal opened in October was only $3.11 million, about 2% of the committed amount and 1% of the total losses.
For the protocols, DFX is, in any case, a more honest instrument than the alternatives. A fixed supply directly tied to verified losses, no further issuance, a publicly disclosed redemption rate, and a clearly defined claims window are a more transparent debt than a vague promise of future compensation. Victims can see exactly what they are holding and its precise value at any given time. Whether that transparency offers any solace depends on the state of the pool in January 2028. The market, with the value of a $200,000 order book, currently assumes it will be at around three cents.
Disclaimer: The content in this article is for informational, research, data analysis, and reference purposes only regarding the cryptocurrency market. All opinions, assessments, forecasts, or opinions reflect the author's perspective at the time of publication and do not constitute investment advice, solicitations for buying or selling, trading recommendations, advertising, marketing, or promotion of any financial products, services, or cryptocurrencies. Mentions of projects, tokens, protocols, exchanges, wallets, or cryptocurrency service providers (CASPs) are for research, analysis, or informational purposes only and should not be construed as endorsements, recommendations, or guarantees in any way. HCCVenture does not broker, advertise, market, promote, or connect users in Vietnam with any cryptocurrency services from CASPs. HCCVenture does not accept asset custody, investment mandates, manage assets, or execute transactions on behalf of clients. All investment decisions are made entirely through the reader's own research (DYOR), evaluation, and responsibility; HCCVenture is not liable for any losses or damages arising from the use of or reliance on the information presented in this article.
Compiled and analyzed by HCCVenture
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