Drift Protocol warns users to pause deposits amid 'unusual' trading activity

Drift Protocol, a decentralized cryptocurrency exchange (DEX), detected “unusual” trading activity on its platform on Wednesday and warned users not to deposit funds until the issue has been resolved.

The Drift team did not disclose the specific cause of the incident or the damage in its initial announcement and is currently investigating the issue. 

Source: Drift Protocol

However, blockchain cybersecurity threat researcher Vladimir S said the exploit was likely due to a private key leak, and the total funds lost in the incident could be as high as $200 million. 

“Admin signer was compromised, or whoever controls it intentionally executed these changes,” he said. 

The stolen assets include wrapped versions of Bitcoin (BTC), Jito (JTO), the Fartcoin (FRT) memecoin, and various dollar, euro, and Japanese yen stablecoins, which have since been transferred to multiple wallets, according to Vladimir S.

Cointelegraph reached out to Drift Protocol but did not receive an immediate response by the time of publication.