Analyst: Market Hungry for More Progress, Sees Several Weeks of Uncertainty on Iran War

**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

April 2nd: Anna, founder of Perena, posted on X noting that its USD, USD-J, and USD*-P products were unaffected by the Drift incident. However, the JLP Treasury managed by the Trade Neutral team was impacted, as it operates within the Drift protocol’s treasury. The team will communicate promptly upon receiving updates from partners.

April 2: Meteora said in an X post that its platform funds are secure, neither its functions nor its treasury are interacting with the Drift protocol, and its treasury has not been deployed to Drift or its integrated treasury.

On April 2nd, LookOnChain monitoring data shows trader HXiRSK purchased 91,891 SOL tokens seven months ago at an average price of $175, totaling $16.04 million. Following the Drift hack incident, he sold 47,401 SOL tokens for $3.98 million to limit losses. His total losses have now exceeded $4 million.

On April 2nd, Omer Goldberg—founder of Chaos Labs, Aave’s risk advisory firm—shared analysis showing Drift Protocol’s signing key holds significant authority with no time lock or delay mechanism in place. A week prior, Drift migrated to a new multisig account created by one signer of the original multisig. Notably, this signer did not add themselves to the new account, and the multisig configuration shifted to **2/5** (one former signer + four new signers). Additionally, community members have raised concerns: several core Drift team members departed last month, sparking questions about the protocol’s governance, key management, and risk control systems.