TLDR
- An address connected to the Drift protocol breach executed transfers of 25,710 ETH—valued at approximately $63.1 million—through Tornado Cash on October 20.
- The operation involved 258 separate deposits completed within a span of two hours and 13 minutes, with roughly 3.98 ETH remaining in the wallet.
- The April 1 security incident saw approximately $280 million drained from Drift, an attack cybersecurity firm Mandiant attributed to North Korean-affiliated group UNC6862.
- On October 1, Drift launched its DFX token claims program, distributing one DFX token for every USDT in confirmed losses.
- By October 4, the redemption rate stood at approximately 0.0104 USDT per DFX token, representing about one penny for every dollar lost.
An Ethereum wallet associated with the April security breach of decentralized trading platform Drift channeled 25,710 ETH into the Tornado Cash mixing service on October 20. The transaction batch carried a combined value of roughly $63.1 million.
Blockchain explorer Etherscan has tagged the account as “Drift Exploiter 5”. These outbound transfers represented the wallet’s initial Ethereum movements, draining it to near-zero balances.
Transaction Pattern and Timeline
The wallet executed 258 individual deposits to Tornado Cash’s router contract. A total of 257 transactions moved 100 ETH each, while a final single transaction transferred 10 ETH.
The initial deposit received blockchain confirmation at 07:08:35 UTC within block 26,232,203. The concluding transaction posted at 09:21:35 UTC in block 26,232,865. The complete operation spanned two hours and 13 minutes.
Following completion, approximately 3.98 ETH remained in the address. The USD valuation reflects an average ETH price of $2,450 recorded on October 20.
Blockchain analytics account Lookonchain independently observed that wallets under its monitoring linked to the exploiter collectively control 81,864 ETH.
The Drift security incident occurred on April 1, more than six months prior to these laundering activities. In a disclosure issued April 2, the protocol calculated that roughly $280 million had been extracted.
Drift reported that the attacker compromised the administrative capabilities of its Security Council. The perpetrator employed durable nonce accounts to pre-authorize transactions and control their execution timing.
According to the platform, this technique enabled the attacker to secure unauthorized or deceptive transaction approvals ahead of time. Drift’s initial assessment found no vulnerabilities in its core programs or smart contract infrastructure.
A June 4 statement from Drift revealed that Mandiant’s investigation established connections between the attack and UNC6862, identified as a North Korean-sponsored threat actor.
User Compensation Framework
Drift has established a Recovery Pool designed to reimburse impacted users. Resources obtained through asset freezes, bounty programs, or law enforcement intervention flow into this pool. Additionally, a portion of the platform’s net protocol earnings contributes to the fund.
The platform activated claims and redemptions for its DFX token on October 1. Affected users are allocated one DFX token for each USDT in validated losses.
Token holders may exchange their DFX for USDT at the published redemption price. The tokens submitted undergo burning during the same transaction.
Users choosing to redeem forfeit their entitlement to future pool contributions for those specific tokens. Partial redemptions preserve the holder’s share corresponding to their remaining DFX balance.
As of October 4, the redemption price registered at approximately 0.0104 USDT per DFX token—essentially one cent for every USDT lost.
In an April 16 proposal, Drift outlined potential support totaling up to $127.5 million from Tether alongside $20 million from additional partners. The strategy encompassed a revenue-linked credit facility, ecosystem grants, and market-maker financing arrangements.
The October 20 deposits document this particular wallet’s disposition of ETH holdings. The ultimate amount of stolen assets that will flow back to the Recovery Pool remains undetermined. Ethereum most recently traded at $2,462.20, representing a 3.55% increase over the preceding 24-hour period.
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