SlowMist: Drift's multi-signature mechanism was modified a week before the theft, followed by an admin key leak

On April 2nd, Wormhole released a statement on X regarding the Drift Protocol exploit incident. The statement confirmed that Wormhole user assets are not currently at risk, and its cross-chain bridge functionality remains operational. That said, some cross-chain transfers may face delays due to a built-in security mechanism targeting Solana. Wormhole’s core contributors have been in contact with the Solana ecosystem team and will continue providing support as needed.

On April 2, Cryptopolitan reports that the Russian government has submitted a bill to the State Duma proposing criminal penalties for illegal cryptocurrency mining. Offenders could face a maximum fine of 2 million rubles (roughly $25,000) and up to five years in prison. Currently, around 50,000 individuals and entities are engaged in mining, but fewer than 1,500 are registered. Separately, Russia has expanded its mining ban to 13 regions—including the Siberian Republic of Buryatia and Trans-Baikal Territory—with the ban set to remain in place through 2031. The Moscow Region’s energy minister has also proposed a ban on mining in Moscow and the Moscow Region, noting local mining consumes about 1 gigawatt of electricity without making a significant contribution to the regional economy. Russia had previously legalized cryptocurrency mining by the end of 2024, requiring operators to register with the Federal Tax Service and pay taxes as mandated by law.

April 2nd — Per Farside Investors monitoring, U.S. Bitcoin spot ETFs recorded a net outflow of $173.7 million yesterday (April 1st). Key breakdown: IBIT saw $86.5 million in net outflows, while FBTC posted $78.6 million. For Ethereum ETFs, total net outflows hit $7.1 million; ETHA alone had a net outflow of $32.3 million.

On April 2nd, per HyperInsight monitoring, Ethereum dropped to the "Liquidation Buddy" price ($2049.15), prompting the entity to slash its holdings again. Just two hours earlier, amid a sharp market selloff triggered by Trump’s speech, the "Liquidation Buddy" was still buying the dip. As of press time, the "Liquidation Buddy" has reduced its 25x leveraged Ethereum long positions to 7,200 coins.

**April 2nd** Solana ecosystem lending protocol Loopscale announced on X that most of its products—including the USDC Genesis and USDC OnRe vaults—were not directly impacted by the Drift incident, with user funds secured. Approximately $170,000 in deposits from the SOL Genesis vault is allocated to MarginFi; a small portion may face indirect exposure via collateral tied to Project0 borrowers’ Drift positions. Loopscale will fully compensate affected users in the event of any losses. Due to MarginFi pausing its protocol functionality, deposits and withdrawals for the SOL Genesis, JitoSOL ONE, and wETH ONE vaults are temporarily disabled. Loopscale will re-enable these services once MarginFi resumes normal operations and provide prompt updates to users.

On April 2, the Xingqing District People’s Court in Ningxia concluded a dispute over entrusted virtual currency investment. Plaintiff Wei entrusted defendants Li and Hu to invest in virtual currencies. When he couldn’t secure a refund amid an urgent need for funds, he sued them for unjust enrichment. After reviewing the case, the court found a mismatch between Wei’s cause of action and the actual legal relationship. It proactively explained legal risks to guide the parties to recognize the underlying entrustment contract. Ultimately, Wei withdrew his lawsuit against Hu, Li returned the investment principal, and the two parties reached a settlement. During mediation, the presiding judge warned Wei of high risk of losing if he persisted with the unjust enrichment claim—he would need to gather new evidence and file a separate entrustment contract dispute, wasting significant time and energy. For the defendants, the judge noted: While Wei’s initial claim was misframed, a genuin