Key Takeaways:
Three crypto projects hit by separate exploits in 2026 are taking divergent approaches to recovery, leaving users with uneven odds of getting their money back.
Drift Protocol rebranded to Velocity DEX on July 1, roughly three months after a $285 million exploit drained more than half of its total value locked, as three crypto projects hit by separate security breaches this year pursue different recovery strategies.
"The rebrand reflects a rebuilt platform with a cleaner architecture and a stronger security foundation," the team said via its official X account, announcing a private beta rollout to select partners and traders in the coming days.
The April 1 exploit — attributed to North Korea-linked actors who compromised privileged multisig access rather than exploiting a smart contract bug — wiped out over half of Drift's total value locked on Solana. The rebuilt platform plans to shift toward USDT-based settlement supported by a Tether market-making facility, with independent audits from firms including OtterSec completed ahead of relaunch. DRIFT token rose 4.18 percent in 24 hours following the announcement, trading near $0.01652, still far below its all-time high.
The rebrand alone does not resolve the compensation question for users still waiting on recovery from the April exploit. Drift's existing recovery plan — issuing claimable "recovery tokens" tied to a growing reserve pool — had already drawn community pushback before the name change, and it remains unclear whether Velocity's relaunch will accelerate or complicate the payout process.
Reflect's USDC+ Recovery Program
Reflect, another project hit by a security breach this year, has launched a USDC+ recovery program aimed at restoring user funds. The program's structure differs from Drift's approach, focusing on direct stablecoin-based compensation rather than recovery tokens. Specific details on the program's funding source and timeline remain limited.
Humanity Protocol Rebuilds After Hack
Humanity Protocol, the third project affected, is pursuing its own rebuild following a separate exploit. The protocol has not disclosed the full extent of its losses or the specific recovery mechanism it plans to deploy, leaving affected users in a holding pattern.
What's at Stake
The three incidents — each involving different attack vectors, loss amounts, and recovery mechanisms — are testing how DeFi protocols handle post-exploit accountability. The divergent approaches could set precedents for how future hacks are managed across the ecosystem, particularly around whether users receive direct compensation, recovery tokens with uncertain value, or face indefinite delays.
The private beta rollout for Velocity over the coming days will be the first real test of whether Drift's rebuilt architecture — and its security promises — hold up. For users of all three protocols, the uneven recovery timelines show a persistent risk in DeFi: even when a project survives a hack, getting funds back is far from guaranteed.
This article is for informational purposes only and does not constitute investment advice.
