Key Insights
- Compound Finance’s frontend compromised, redirecting to phishing site; protocol and existing user deposits remain unaffected.
- Security expert warns against interacting with fraudulent site to prevent fund draining; Compound manages $2.3 billion in assets.
LONDON (MarketsXplora) – Compound Finance, a major player in the decentralized finance (DeFi) sector, reported on Thursday that its frontend interface had been compromised, redirecting users to a phishing site.
The company announced the breach via social media platform X, warning users that the official compound.finance website was now leading to a fraudulent “compound-finance.app” domain.
ALERT: The https://t.co/vSAGYl6wwJ URL has been compromised and is currently hosting a phishing site. DO NOT interact with the https://t.co/vSAGYl6wwJ website until further notice.
The Compound protocol itself is not impacted and all smart contract funds are safe.
— Michael Lewellen (@LewellenMichael) July 11, 2024
Security expert Michael Lewellen cautioned that interacting with the fake site could result in users’ funds being drained. However, he emphasized that the Compound protocol itself remains unaffected, with all existing user deposits secure.
Phishing attacks, which involve fraudulent communications masquerading as legitimate sources, have become a significant concern in the cryptocurrency market. In the first two months of 2024 alone, such attacks have resulted in losses exceeding $104 million for unsuspecting users.
Compound Finance, which operates on the Ethereum blockchain, allows users to deposit, lend, and borrow tokens. As of Thursday, it manages over $2.3 billion in assets, solidifying its position as one of the largest DeFi services in the industry.
Despite the frontend compromise, the market reaction has been muted. Data from CoinGecko shows that prices of Compound’s native COMP token remained relatively stable over the past 24 hours.
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