DeFi protocol Compound Finance has acknowledged a breach of its website, confirming an ongoing cyber attack. The incident was reported by blockchain security firm PeckShield Alert on Thursday, July 11, via an X post. PeckShield urged users to avoid the protocol’s website until further notice.
🚨 URGENT: The Compound Labs website (compound[.]finance) has been compromised.
Please do not visit the website or clink any links until further notice. An update will be provided when available.
This is our final message // end of tweet. 🚨
— Compound Labs (@compoundfinance) July 11, 2024
Michael Lewellen, Compound Finance’s Security Advisor, had first alerted his X followers that the protocol’s website had been compromised and now hosting a phishing site. He, however, reassured users that the Compound Protocol itself and all connected smart contracts remained unaffected by the attack.
Compound Labs publicly confirmed the breach within two hours of Lewellen’s post, echoing the warning to avoid the website and promising an update from the development team soon.
Pseudonymous blockchain investigator ‘ZachXBT’ also corroborated the incident on his Telegram investigations channel. He reported that the Compound Finance website had been hijacked and was redirecting users to a newly registered phishing site, advising users to steer clear of the website for now.
The community’s reaction to the website hijacking was mixed. Some users expressed concern about potential risks to their assets, while others appreciated the team’s swift announcement of the hijacking.
Ignat Shapkin, co-founder of Ylide protocol, noted this as the second security breach in six months and suggested a need for changes in the operations team.
Meanwhile, this incident occurs against a backdrop of significant attacks on the crypto sector in recent months. PeckShield Alert recently published a report stating that hackers stole $176.2 million worth of assets from crypto platforms in June alone. However, this figure represents a 54.2% decrease from the previous month’s losses of $574.6 million.
As the situation develops, users are advised to remain vigilant and await further updates from the Compound Finance team.
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