Velocity, the trading platform formerly known as Drift, has begun compensating users affected by its April 1 exploit through a recovery-token program that initially returns roughly one cent for every dollar lost. Eligible users can claim one DFX token for each USDT lost, then either redeem the token for the current payout, sell it on secondary markets, or hold it for potential future distributions.
The first redemption rate is a little above 0.01 USDT per DFX, according to Velocity’s recovery dashboard. A user whose loss was recorded at 10,000 USDT, for example, would receive 10,000 DFX and could currently redeem them for slightly more than 100 USDT.
Redeeming carries a permanent trade-off. Velocity burns DFX once they are exchanged for USDT, ending the holder’s right to any later recovery payments associated with those tokens. The structure gives users an immediate but small payout while leaving open the possibility that unredeemed claims could gain value if the recovery pool receives more capital.
As of Friday, the dashboard recorded 216,480 DFX redeemed for about 2,250 USDT. The protocol listed the recovery pool at 3.11 million USDT, composed of protocol assets, while net revenue routed into the pool stood at 31 USDT after the program’s first day.
Revenue commitment leaves repayments dependent on time
Velocity has said it will direct between 60% and 90% of net protocol revenue to the DFX recovery pool. That commitment ties the eventual value of the claims to the platform’s ability to sustain trading activity and generate revenue after its relaunch.
The model differs from a fixed reimbursement fund. DFX functions as a proportional claim on a pool that could grow through protocol income, recovered stolen assets, and promised outside support. A holder who redeems at the current rate exits that arrangement; a holder who keeps DFX remains exposed to both the potential upside and uncertainty of later funding.
Velocity has capped the supply at 299.5 million DFX, a figure designed to match the losses recognized under the recovery program. Unclaimed DFX will expire and burn on Jan. 1, 2028, setting a multi-year deadline for affected users to decide whether to claim and how to use the tokens.
Secondary-market trading could create a separate price for DFX. If tokens trade on decentralized venues such as Raydium, the market price may differ from the dashboard’s redemption value, reflecting expectations about revenue, asset recovery, and contributions from outside backers. A market price above the official redemption rate would offer holders an alternative exit, while a discount would signal that traders are placing a lower value on future pool growth.
Tether and partner pledges are not yet reflected on the dashboard
The recovery dashboard did not list a contribution from Tether, despite the stablecoin issuer committing up to $127.5 million to support Velocity’s relaunch and customer recovery. It also did not show the up to $20 million pledged by strategic partners.
Those commitments are potentially much larger than the pool currently displayed, but their absence from the dashboard means the live redemption rate remains based on funds already allocated to the mechanism. The difference between announced support and deposited recovery assets will be central to whether DFX values rise materially over time.
The structure also places priority on the timing and terms of any outside funding. Capital added directly to the DFX pool would increase the assets backing outstanding claims. Funds used instead for operational support, liquidity, security measures, or the relaunch could help the platform continue operating but would not necessarily produce an immediate increase in redemption value.
Velocity has not presented the currently visible 3.11 million USDT pool as a complete measure of all pledged recovery support. For affected users, the more relevant figure is the amount ultimately committed to the DFX pool after any conditions attached to outside financing are met.
April exploit drained nearly $295.4 million
In a Sept. 30 update, the Drift Foundation said the April exploit resulted in losses of approximately $295.4 million. The cybersecurity firm Mandiant identified the attacker as UNC6862, which it described as a North Korean threat group.
According to the foundation, the stolen funds were bridged to Ethereum following the attack. Three wallets associated with the attacker continued to hold 107,165 ETH, valued at nearly $286 million at the time of the update. A fourth wallet had previously moved 23,094 ETH through Tornado Cash in July.
The foundation said about $9.2 million of stolen assets had been frozen. Returning those funds to the DFX recovery pool would require a law-enforcement order, leaving that portion of the recovery effort subject to a process outside Velocity’s direct control.
The large amount of ETH still visible in attacker-linked wallets gives law enforcement and blockchain investigators a substantial pool to monitor, but visibility does not equate to recoverability. The funds remain outside the recovery pool unless they are frozen, seized, or voluntarily returned.
Relaunch follows management change and new insurance fund
Velocity’s claims program arrived alongside a public relaunch of the trading platform. Co-founder Leow stepped down on Sept. 29, shortly before the updated platform opened to users, adding a management change to an already difficult recovery effort.
The company has also introduced a separate insurance mechanism funded by 15% of daily trading fees. That fund is distinct from the DFX pool and is intended to create a reserve against future losses rather than directly compensate victims of the April exploit.
The recovery program is therefore built on several moving parts: protocol revenue, potential external contributions, frozen assets that may require legal action, and the platform’s ability to retain enough activity to fund its commitments. The initial redemption rate shows that the pool currently covers only a small fraction of recognized losses, while the remaining value of DFX depends on money that has yet to reach the recovery mechanism.
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