gm ct 🔆🌅
@reflectmoney seems to be the most affected by the
@DriftProtocol hack.
i want to ask
@0xNIC0, your platform clearly stated that all funds are fully insured. also, no team in their right mind would allocate everything into a single bucket.
so who is accountable here? 👀
your recent update doesn’t clearly explain what happens to users’ funds. clarity is needed. Otherwise, most of the users are ready to take legal action. 💯
Update: WRT Drift Protocol Exploit
On April 1st, an exploit occurred on an external integration Drift protocol that impacted the Reflect ecosystem. We understand the stress this brings to our community, and want to provide clarity on the situation.
At no point was any Reflect system compromised. Our platform, smart contracts, and non-custodial software maintain full security and integrity.
The Situation & Asset Impact
Upon learning of the exploit on the Drift program, issuance and redemption of USDC+ and USDT+ were frozen. This was necessary because the redemption rate is programmatically protected by the Reflect protocol, and a freeze was required to uphold that mechanism's integrity.
By the time the freeze took effect, the exploiter had already maximized borrow capacities across Drift markets.
USDC+: During the current phase of the Reflect non-custodial software beta, USDC+ collateral was routed to the Drift protocol and has been directly impacted by this external exploit.
USDT+: USDT+ collateral was never exposed to Drift, as it utilizes independent venues including Jupiter and Kamino lending markets. USDT+ is unaffected, and operations will resume shortly.
Moving Forward
We are working closely with legal counsel to understand the full scope of this situation and determine the best path forward for beta testers of the Reflect non-custodial software.
Out of respect for ongoing investigations and legal protocols, we cannot speculate on specific outcomes or timelines. We are monitoring the investigation by the Drift team and relevant authorities, and will communicate any material progress with appropriate haste.
Thank you for your patience as we navigate this. We appreciate the support from our community and the broader industry during this time.