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Industry

Velocity Defends Drift Rebrand After $295M Crypto Exploit

The Drift team says the Velocity rebrand is about rebuilding trust and improving security, not escaping accountability after the exploit.

Written By Sharmistha Suman Sharmistha Suman
Edited by Shubham Soni Shubham Soni
Published 1 hour ago·Updated 31 minutes ago
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Velocity Defends Drift Rebrand After $295M Crypto Exploit

Key Highlights

  • Drift defended its rebrand to Velocity after criticism from the community.
  • Team members said recovery efforts and victim compensation remain active.
  • Protocol revenue continues to fund a Recovery Pool for affected users.

Drift Protocol team member Tracy Chow, who focuses primarily on business development, publicly addressed criticism surrounding the project’s rebranding efforts and recovery process in an X post on Thursday. 

In response to accusations that the team is “running away” from responsibility following a major exploit, Tracy firmly rejected the claims. “If we wanted to run, we would’ve run,” Tracy wrote. “We wouldn’t be here rebranding publicly, getting dragged every day, and still working day and night to relaunch.”

“Drift is running away.” No, we’re not

If we wanted to run, we would’ve run. We wouldn’t be here rebranding publicly, getting dragged every day, and still working day and night to relaunch.

The recovery plan is live and public. Protocol revenue is going into the Recovery Pool.…

— Tracy (@tracybbd) July 1, 2026

The team member reaffirmed that its recovery plan remains active, with protocol revenue continuing to flow into the Recovery Pool for affected users. While acknowledging the $295 million exploit, Chow said the rebrand does not erase past events or their responsibility.

Tracy responds to criticism 

In an X post, one X user questioned the decision to rebrand, stating, “Then why change the name and logo? Just make the best product with ‘DRIFT’… this looks extremely stupid and ridiculous.”

To which Tracy replied, “We could’ve kept the same name. But if the product is actually good a year from now, do we really want every new user’s first impression to still be the hack? That’s not us trying to erase what happened. It happened. We know.”

We could’ve kept the same name. But if the product is actually good a year from now, do we really want every new user’s first impression to still be the hack?

That’s not us trying to erase what happened. It happened. We know.

Ideally, when people mention Velocity, the reaction…

— Tracy (@tracybbd) July 1, 2026

The exchange grew more intense as another user commented: “You would have run you doxxed that’s why you doing it slow… just open the insurance vault.” Tracy responded: “I’m just an employee lol, I could’ve resigned. I stayed because I want to help.”

A few others accused the team of being “criminals” and demanded they “accept accountability and step down.” Tracy countered, “Is your preferred outcome for everyone to step down, the project shuts down, and there’s no path for any amount lost to be recovered?”

The team member said the rebrand to Velocity is intended to rebuild user confidence rather than distance the project from the exploit. Tracy said the team’s goal is for users to eventually view the project as one that “rebranded, rebuilt, and revenue from the new product goes back to victims of the exploit.”

Drift begins new chapter after exploit

A day ago, Drift Protocol announced rebranding to Velocity, describing the move as the start of a new chapter focused on speed, precision, and reliability in trading. The team said the change emphasizes updated infrastructure, redesigned architecture, stronger security measures, and a streamlined user experience. 

A private beta for selected partners and traders is launching to test the revamped perpetuals platform ahead of a wider rollout, though no public launch timeline was shared.

The rebrand follows an April 2026 exploit that drained approximately $295 million. Attackers, reportedly North Korean-linked, used social engineering on multisig signers and governance manipulation to seize admin control, drain vaults, and rapidly bridge out funds, not a smart contract flaw. Recovery efforts continue via a dedicated pool funded by future protocol revenue to support affected users.

Community scrutiny continues

Despite the team’s assurances that recovery efforts remain underway, the rebrand has continued to draw criticism from some community members, who argue that changing the project’s name and branding while compensation is still ongoing could undermine user confidence. The team has maintained that rebuilding the platform and directing future protocol revenue toward the Recovery Pool are central to its long-term recovery strategy.

Tracy’s public engagement with critics reflects the team’s effort to address concerns directly, while the responses highlight continued frustration among affected users over the exploit, communication, and accountability.

Also Read: Bybit and BGA to Demo Blockchain Solutions for Real-World Challenges

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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Sharmistha Suman
By Sharmistha Suman
Sharmistha Suman is a Crypto Journalist at The Crypto Times, based in Bhopal, Madhya Pradesh. She covers Bitcoin and Ethereum price action, Indian crypto regulation, and emerging Web3 protocols, with a particular focus on how Indian retail and institutional investors participate in the global digital asset market. She joined The Crypto Times in April 2026. Sharmistha has been writing on cryptocurrency and blockchain since 2022. Before joining The Crypto Times, she contributed to The News Crypto and Todayq, and produced independent research on Indian crypto adoption, the country's evolving regulatory framework, and the developer ecosystems building on Ethereum and Solana. She holds a Master's degree in Digital Journalism and a Bachelor's degree in Journalism and Creative Writing, both from Makhanlal Chaturvedi National University of Journalism and Communication in Bhopal.
Shubham Soni
By Shubham Soni
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Shubham Soni is the Editor at The Crypto Times, based in Ujjain, Madhya Pradesh. He oversees the editorial desk, reviewing daily news coverage of cryptocurrency markets, US and Indian regulation, institutional adoption, the Solana ecosystem, AI agents, and Real World Assets (RWAs). All policy and markets coverage at The Crypto Times passes through his desk before publication. Before joining The Crypto Times in October 2025, Shubham managed news desks at Sportskeeda and Opoyi, covering global politics, sports, and entertainment for high-volume newsrooms serving the US and Indian markets. His four years in fast-paced newsrooms shaped his approach to fact-checking, source verification, and structural editing on complex stories. Shubham holds a Master's degree in Journalism from Makhanlal Chaturvedi National University of Journalism and Communication (Bhopal) and a Bachelor's degree in Journalism from Amity University Rajasthan. 

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