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Michael Lewellen, security adviser at the Compound Finance DAO, stated that the Compound Finance URL has been compromised and “is currently hosting a phishing site.
The official website of Compound Finance, a decentralized finance (DeFi) lending protocol that was extremely popular during the 2021 crypto market bull run, has been hacked and is now hosting a fake phishing link. The hack was first reported by blockchain investigator ZachXBT, who advised crypto community members not to visit the site for the time being.
ZachXBT was the first to reveal the hijack on his official channel on the messaging platform Telegram. The official Compound Finance website currently redirects to a newly registered phishing site that aims to drain investors’ wallets. Interestingly, a member of the DeFi protocol’s team took to social media platform X (formerly known as Twitter) to confirm the hack.
Michael Lewellen, security adviser at the Compound Finance DAO, said in an X post that the Compound Finance URL has been compromised and “is currently hosting a phishing site,” adding:
“DO NOT interact with the compound.finance website until further notice. The Compound protocol itself is not impacted and all smart contract funds are safe.”
However, the official account of Compound Finance has yet to address the issue or provide insight into the hack. Additionally, DeFi Saver, an all-in-one DeFi management tool, confirmed that the front end of the website was down, hoping that the DeFi protocol’s development team would sort out the issue quickly.
Compound Finance was formed in 2017 by Robert Leshner and Geoffrey Hayes and allows users to borrow and lend digital assets without the presence of intermediaries. The protocol relies on smart contracts that execute without outside involvement. The project raised a whopping $25 million in 2019 from Coinbase Ventures, Paradigm, and Dragonfly Capital, among others.
It is important to note that this wasn’t the first time that Compound Finance was hacked. In December 2023, the protocol’s official X account was taken over by hackers. The attackers used the social media account to post a phishing link to a website that was a copy of the original Compound Finance website. Also, scam crypto tokens were promoted via the X account as well.
Compound Finance (COMP) Token on a Downtrend
COMP, the native token of the Compound Finance ecosystem, has been on a downtrend since reaching an all-time high of $911.20 in 2021. The cryptocurrency is priced at $47.28 at the time of writing, marking a 99% decline from the all-time high. The general interest in the digital asset has died, with the altcoin’s price crashing by 26.55% since July 2024. Competitors like Aave (AAVE) outperformed COMP, printing 27.10% in gains in the past year.
The trading volume of the COMP token stands at $22 million, while its market capitalization is $396 million, ranking it as the 135th largest digital currency. Following the news of the hack, the COMP token hasn’t moved much and is down by 1.03% in the last 24 hours.
