Crypto users are being warned to avoid the Compound Finance website following reports of a security breach. On July 11th, blockchain investigator ZachXBT raised concerns on Telegram, urging users to stay away from the site due to a suspected redirect to a phishing website.
This potential compromise could lead to the theft of personal data and crypto funds.
Compound Finance team member Michael Lewellen confirmed the breach, advising users to refrain from interacting with the website. Lewellen reassured users that the underlying protocol itself remains secure and smart contract funds are safe.
Deja Vu: Compound Targeted Again
This isn’t the first time Compound Finance has faced a security attack. In December 2023, the platform’s official X account (formerly Twitter) was compromised. Hackers leveraged the social media platform to promote a fraudulent website offering “free” crypto tokens. The attack mimicked the official Compound website, but cybersecurity experts like Officer’s Notes and Scam Sniffer quickly identified it as a scam. Compound Labs recovered the account within four hours and removed the malicious content.
Phishing on the Rise in Crypto
The recent incident highlights the growing threat of phishing attacks within the cryptocurrency space. According to a report by CertiK, phishing scams resulted in nearly $498 million in crypto losses during the first half of 2024. As the cryptocurrency market continues to evolve, experts warn that these attacks are likely to become even more prevalent.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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