ZachXBT Reports Compound Finance Website Attack

In a recent post on Telegram, ZachXBT informed the community about the official Compound Finance website being compromised and advised users to avoid it due to potential asset and security risks.

Compound Finance Confirms the Incident

A member of the Compound Finance team confirmed this information and advised users to avoid interacting with their compromised website.

Michael Lewellen, a security adviser at Compound Finance DAO, revealed that the URL had been compromised and was currently hosting a phishing platform.

Notably, this is not the first time Compound Finance has faced such security breaches.

In 2023, the official account of this decentralized finance (DeFi) protocol was hijacked by hackers who exploited the company’s social media platform to promote a phishing website.

The compromised account posted an advertisement offering free crypto tokens and directed users to click on a link impersonating the official site.

However, the scam was swiftly identified and flagged by vigilant users.

Cybersecurity blogger Officer’s Notes and blockchain security platform Scam Sniffer both confirmed that the compromised account had been sharing phishing links.

Related: Binance Freezes $5 Million USD in Relation to BtcTurk Exchange Hack

Ronghui Gu Concerns Over Crypto-Related Attacks

Earlier this year, on April 4, CertiK co-founder and CEO Ronghui Gu urged the crypto community to proactively prepare for security attacks as the market continued to expand.

He noted a concerning rise in phishing attacks within the crypto space, prompting calls for enhanced security measures.

In a recent report on July 3, the company noted that losses from crypto security incidents had amounted to $1.19 billion in the first half of 2024, with nearly $498 million attributed to phishing attacks.

Gu emphasized the importance of implementing multifactor authentication and adopting robust security measures to mitigate such risks.