Compound Finance confirms ZachXBT’s Hack Warning

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.

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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

Harsh Chauhan

Harsh Chauhan is an experienced crypto journalist and editor at CryptoNewsZ. He was formerly an editor at various industries and has written extensively about Crypto, Blockchain, Web3, NFT and AI. Harsh holds a Bachelor of Business Administration degree with a focus on Marketing and a certification from the Blockchain Foundation Program. Through his writings, he hold the pulse of rapidly evolving crypto landscape, delivering timely updates and thought-provoking analysis. His commitment to providing value to readers is evident in every piece of content produced.



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Published at Thu, 11 Jul 2024 13:01:44 +0200

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