Compound Finance confirms ZachXBT’s Hack Warning

Earlier today, renowned crypto investigator ZachXBT warned users to avoid the Compound Finance website. In a Telegram post, ZachXBT said that the ”Compound Finance website seems to potentially be hijacked do not visit the site for the time being.” 

ZachXBT added that the website “currently redirects to a newly registered phishing site.” This is no longer a warning; it has just been confirmed.

Compound Finance has been hacked

Compound Finance sent a warning to their users on X a few minutes ago. The entity’s official report read “The Compound Labs website (compound[.]finance) has been compromised. Please do not visit the website or click any links until further notice. An update will be provided when available.” 

In addition, Compound DAO security consultant Michael Lewellen has confirmed that Compound Finance’s official website has been hacked and is currently hosting a phishing website. 

However, he has made some clarifications on his X post. One is that he warns, “DO NOT interact with the compound finance website until further notice.”

Secondly, he says, “The Compound protocol itself is not impacted, and all smart contract funds are safe.”

Compound Finance is designed to be used as a crypto borrowing and lending protocol. At first glance, users can deposit tokens supported by Compound Finance into a shared pool and earn interest. 

On the other hand, users can borrow token amounts and pay back interest after depositing their tokens. The interest is always determined by the supply and demand of tokens deposited and borrowed in the pool.

This is not the company’s first rodeo with security breaches. In 2023, it’s official X account was hacked. The hackers exploited the company’s X account to promote a phishing website.

Advertisement

Compound Labs team later confirmed they were hacked for 4 hours but managed to secure the account and remove the spam messages.

Also Read: Peter Schiff Slams Bitcoin as Fraudulent Investment

Florence Muchai

Florence Muchai is an experienced crypto journalist with 4 years experience in Crypto, Blockchain, Web3, NFT and AI. Florence holds a Bachelor's Degree in Disaster Management and International Diplomacy. She also has a Master's Degree in Clinical Psychology. Florence enjoys being a digital nomad and her writings tell value, wealth and in-depth understanding of decentralized and traditional finance.

Related Articles

Back to top button