Compound Finance Hacked. Compound Finance, a decentralized finance (DeFi) lending platform that experienced a meteoric rise in popularity during the 2021 crypto market bull run has compromised its official website and is now displaying a malicious phishing link. The attack was initially brought to light by blockchain investigator ZachXBT, who cautioned crypto community members to avoid visiting the site temporarily.
ThZachXBT was there to announce the hijack on his official Telegram channel. At the moment, investors’ money is being stolen via a newly registered phishing site that replaces the genuine Compound Finance website. It is quite interesting that a team member from the DeFi protocol confirmed the hack on social media platform X (formerly Twitter). In an X post, Compound Finance DAO security adviser Michael Lewellen announced that the Compound Finance URL has been hacked and “is currently hosting a phishing site.” He emphasized that users should refrain from interacting with the compound. Finance website until further notice. There will be no disruption to the Compound protocol, and the money in smart contracts will remain secure.
Compound Finance Problem
Nevertheless, neither the official Compound Finance account has addressed the problem nor provided any information regarding the hack. Also, according to DeFi Saver, an all-in-one DeFi management application, the website’s front end was unavailable. We are expecting that the DeFi protocol’s development team can fix it quickly.
Founded in 2017 by Robert Leshner and Geoffrey Hayes, Compound Finance eliminates intermediaries from lending and borrowing digital assets. Automated contract execution is the protocol’s backbone. Numerous investors, including Coinbase Ventures, Paradigm, and Dragonfly Capital, contributed $25 million to the initiative in 2019.
It is noteworthy that this wasn’t Compound Finance’s first hack. In December 2023, hackers gained control of the protocol’s official X account. The criminals took advantage of the social media account by posting a phishing link that led to a website that looked identical to the real Compound Finance website. The X account also advertised fraudulent cryptocurrency coins.
Compound Finance (COMP) Token on a Downtrend
When it peaked at $911.20 in 2021, the native coin of the Compound Finance ecosystem, COMP, began a downward spiral. As of this writing, the cryptocurrency’s price has dropped 99% from its all-time high and is now at $47.28. With a 26.55% drop in value since July 2024, the digital asset’s widespread appeal has waned. Compared to COMP, rivals like Aave (AAVE) saw increases of 27.10% during the previous 12 months.
At $396 million in market value and 22 million in trading volume, the COMP token is the 135th biggest digital currency by far. In the twenty-four hours after the hack became public knowledge, the COMP token has remained relatively unchanged, falling by 1.03%.
