{"investigation":{"slug":"compound-finance","entity_name":"Compound Finance","trust_score":55,"severity_base":null,"score_modifier":-10,"confidence":0.8,"status":"draft","content_type":"investigation","summary":"Compound Finance is one of the earliest and most established decentralized lending protocols on Ethereum, launched in 2018 and governed since 2020 by a DAO around the COMP token. The protocol's smart-contract core has never suffered a direct exploit of user funds, but it has been repeatedly hit by operational and front-end security failures — a costly 2021 token-distribution bug, a 2023 X/Twitter account compromise used for phishing, a 2024 DNS hijack of its website, and a 2024 governance controversy in which a whale-backed group used purchased voting power to pass a treasury allocation over community objections. Combined with declining total value locked and a 2023 leadership departure, these incidents warrant continued scrutiny even though the underlying lending contracts have a long audit history and no reported loss of user deposits from a core-protocol hack.","sections":[{"content":"Compound is an algorithmic, autonomous interest-rate protocol built on Ethereum that allows users to supply and borrow crypto assets, launched by Compound Labs, a startup co-founded by Robert Leshner and Geoffrey Hayes and based in San Francisco. In November 2019 Compound closed a $25 million Series A round led by Andreessen Horowitz (a16z), with participation from Paradigm, Bain Capital Ventures, Polychain Capital and others, following an earlier $8.2 million seed round. In 2020 Compound launched the COMP governance token and transitioned control of the protocol to a decentralized autonomous organization (DAO) in which COMP holders vote on upgrades and treasury spending, a model widely credited with popularizing 'yield farming' and DAO-based DeFi governance. Compound III (also called 'Comet'), a redesigned single-borrow-asset version of the protocol, went live in 2022. Robert Leshner stepped back from day-to-day leadership of Compound Labs and, in 2023, founded a separate company, Superstate, focused on bringing traditional financial assets such as U.S. Treasuries on-chain; Superstate raised a $14 million Series A in November 2023. Leshner has since been publicly skeptical that traditional financial institutions are ready to adopt blockchain infrastructure. As of August 2026, Compound's total value locked has fallen roughly 90% from its September 2021 peak of about $12 billion to roughly $1.2–1.5 billion, prompting the Compound DAO to approve a $52 million budget in August 2026 to pursue an institutional-focused pivot with new leadership drawn from Coinbase Custody, Near Foundation, and Maple Finance.","heading":"Protocol Overview and History","sources":[{"url":"https://www.coindesk.com/tech/2019/11/14/defi-startup-compound-finance-raises-25-million-series-a-led-by-a16z","name":"DeFi Startup Compound Finance Raises $25 Million Series A Led by A16z","type":"news_article","credibility":2},{"url":"https://www.theblock.co/post/47158/a16z-paradigm-back-compounds-25m-series-a-to-integrate-with-crypto-exchanges-and-brokers","name":"a16z, Paradigm back Compound's $25M Series A to integrate with crypto exchanges and brokers","type":"news_article","credibility":2},{"url":"https://fortune.com/crypto/2024/04/29/compound-founder-robert-leshner-why-blockchain-isnt-ready-for-wall-street/","name":"Compound founder Robert Leshner discusses stepping away","type":"news_article","credibility":1},{"url":"https://fortune.com/crypto/2023/11/15/compound-founders-new-firm-superstate-14-million-modernize-investing-crypto-style-tools/","name":"Compound founder's new firm Superstate raises $14 million","type":"news_article","credibility":1},{"url":"https://www.coindesk.com/business/2026/08/17/compound-bets-usd52-million-new-leadership-team-in-switch-to-institutional-focus","name":"Compound bets $52 million, new leadership team in switch to institutional focus","type":"news_article","credibility":1},{"url":"https://thedefiant.io/news/defi/compound-foundation-52m-institutional-credit-leadership","name":"Compound Foundation Names Coinbase And Anchorage Alumni To Run $52 Million Institutional Push","type":"news_article","credibility":2}],"severity":"low"},{"content":"On September 30, 2021, a Compound governance change known as Proposal 62 — intended to split COMP token rewards between suppliers and borrowers according to governance-set ratios rather than an even split — introduced a smart-contract bug in the Comptroller contract. Because a comparison operator in the updated code (effectively '>' rather than '>=') was miscalibrated, and because the contract's public 'drip' function could be called by anyone to top up its COMP balance from the Reservoir, the contract began distributing far more COMP than intended to some users. Founder Robert Leshner stated publicly that the worst-case exposure was bounded at 280,000 COMP, worth roughly $80–84 million at the time, while other outlets reported single transactions claiming tens of millions of dollars' worth of tokens (one address reportedly claimed 91,000 COMP, about $27 million, in one transaction) and total exposure estimates in various reports ranging from roughly $70 million to over $150 million depending on the COMP price and timeframe used. Because Compound's governance design has no admin 'pause' switch and any fix requires a seven-day, on-chain governance vote, the vulnerable contract could not be immediately shut down. Leshner asked recipients on Twitter to voluntarily return over-distributed COMP, offering a 10% white-hat reward and warning that unreturned funds would be reported to the U.S. Internal Revenue Service as income. The community subsequently passed a follow-up proposal to patch the bug; a repair proposal was submitted on October 2, 2021, and a further governance vote on October 9, 2021 approved additional fixes, though a report from CoinDesk noted that as of early October 2021 the contract remained vulnerable and additional tokens had been added to it in the interim. No user deposits were lost as a result of the bug; the impact was limited to over-distribution of the COMP governance/rewards token itself.","heading":"2021 COMP Token Distribution Bug (Tens of Millions of Dollars Overpaid)","sources":[{"url":"https://www.coindesk.com/tech/2021/09/30/defi-money-market-compound-overpays-15m-in-comp-rewards-in-possible-exploit","name":"DeFi Money Market Compound Overpays Millions in COMP Rewards in Possible Exploit; Founder Says $80M at Risk","type":"news_article","credibility":2},{"url":"https://www.coindesk.com/tech/2021/10/01/compound-founder-says-80m-bug-presents-moral-dilemma-for-defi-users","name":"Compound Founder Says $80M Bug Presents 'Moral Dilemma' for DeFi Users","type":"news_article","credibility":2},{"url":"https://www.coindesk.com/business/2021/10/03/66m-in-tokens-added-to-recently-hacked-still-vulnerable-compound-contract","name":"$66M in Tokens Added to Recently Hacked, Still-Vulnerable Compound Contract","type":"news_article","credibility":2},{"url":"https://www.theregister.com/2021/10/01/compound_crypto_bug/","name":"Smart contract bug gives away $90m in COMP cryptocurrency","type":"news_article","credibility":2},{"url":"https://x.com/rleshner/status/1443380518498848768","name":"Robert Leshner on X: Proposal 62 bug announcement","type":"social_media","credibility":2},{"url":"https://compound.finance/governance/proposals/62","name":"Compound Governance Proposal 62 (Cactus)","type":"official","credibility":1}],"severity":"high"},{"content":"On December 29, 2023, Compound Finance's official X (formerly Twitter) account was compromised. At 4:57 p.m. UTC that day, the hijacked account posted an advertisement for 'free $COMP tokens' directing users to a phishing site at a lookalike domain, which security researchers identified as a 'Pink Drainer' wallet-drainer scam site. Security-monitoring account Officer's Notes flagged the compromise within roughly 17 minutes, at 5:14 p.m. UTC the same day. Blockchain investigator ZachXBT reported that approximately 275,700 LINK tokens, worth about $4.4 million, were phished roughly two and a half hours after the malicious post and subsequently laundered through an exchange; multiple outlets noted ZachXBT did not explicitly confirm the loss was tied to this specific post, though the timing and vector strongly suggested a connection. On December 30, 2023, the Compound Labs team confirmed the account had been compromised for approximately four hours before it was recovered and the malicious posts removed. The incident affected only the social-media account and an external phishing page; Compound's smart contracts and user deposits were not directly implicated.","heading":"December 2023 X Account Compromise and Phishing Losses","sources":[{"url":"https://cointelegraph.com/news/compound-finance-x-twitter-account-hacked-posted-scam-link","name":"Compound Finance's X account hacked, promotes phishing site to steal crypto","type":"news_article","credibility":2},{"url":"https://cryptorank.io/news/feed/fed1b-compound-finance-breach-of-its-x-account","name":"Compound Finance suffers a breach of its X account","type":"news_article","credibility":2},{"url":"https://www.bitget.com/news/detail/12560603865604","name":"Compound Finance's X account hacked, promotes phishing site to steal users' crypto","type":"news_article","credibility":2}],"severity":"high"},{"content":"In early-to-mid July 2024, a wave of DNS hijacking attacks hit numerous cryptocurrency projects whose domains had been migrated to the Squarespace domain registrar following its acquisition of Google Domains; researchers attributed the hijacks to weak default security settings introduced during that migration. The attacks reportedly occurred between July 9 and July 12, 2024, and affected domains including Compound Finance, Celer Network, Pendle Finance, and Unstoppable Domains, redirecting visitors to phishing pages hosting wallet-draining kits. Blockchain investigator ZachXBT first flagged that the Compound Finance website appeared to have been hijacked, and Compound Labs issued an urgent warning via its official X account at approximately 5:15 a.m. EDT on July 11, 2024, confirming the compound.finance site had been compromised and redirected to a phishing page. Compound security advisor Michael Lewellen publicly stated that while the website itself had been compromised, the Compound protocol's smart contracts remained unaffected and user funds in the protocol were secure; the risk applied only to users who connected wallets to the spoofed front end during the compromise window. Researchers later estimated that over 100–228 DeFi protocol front ends registered through Squarespace remained potentially at risk following the initial wave of attacks.","heading":"July 2024 Squarespace DNS Hijack of the Compound Website","sources":[{"url":"https://www.bleepingcomputer.com/news/security/dns-hijacks-target-crypto-platforms-registered-with-squarespace/","name":"DNS hijacks target crypto platforms registered with Squarespace","type":"news_article","credibility":2},{"url":"https://krebsonsecurity.com/2024/07/researchers-weak-security-defaults-enabled-squarespace-domains-hijacks/","name":"Researchers: Weak Security Defaults Enabled Squarespace Domains Hijacks","type":"news_article","credibility":1},{"url":"https://www.cryptotimes.io/2024/07/11/compound-finance-website-hijacked-for-phishing-scam/","name":"Compound Finance Website Hijacked For Phishing Scam","type":"news_article","credibility":2},{"url":"https://protos.com/compound-finance-and-celer-network-websites-compromised-in-front-end-attacks/","name":"Compound Finance and Celer Network websites compromised in 'front-end' attacks","type":"news_article","credibility":2},{"url":"https://decrypt.co/239524/220-defi-protocols-risk-squarespace-dns-hijack","name":"More Than 220 DeFi Protocols Still 'at Risk' From Squarespace DNS Hijack","type":"news_article","credibility":2}],"severity":"high"},{"content":"In July 2024, a pseudonymous crypto trader known as 'Humpy' and an associated delegate group calling themselves the 'Golden Boys' submitted Compound Governance Proposal 289, which proposed allocating 499,000 COMP tokens from the DAO treasury — approximately 5% of the treasury, worth about $24 million at the time — into a wrapped 'goldCOMP' yield-bearing vehicle to be managed at the Golden Boys' discretion for one year. Voting opened on a Thursday and ran through the weekend; the proposal passed by a vote of 682,191 to 633,636 on Sunday, July 28, 2024. Compound security advisor Michael Lewellen (also affiliated with OpenZeppelin) publicly alleged that the vote had been swayed by a coordinated group of newly created or funded accounts that purchased large amounts of COMP on the open market shortly before the vote specifically to push the proposal through, characterizing it as a governance attack; he and other community members noted Humpy had been involved in a similar contested governance dispute with the Balancer protocol in 2022. Following the vote, COMP's price fell sharply — reported by CoinDesk as down roughly 67% amid the controversy — reflecting market alarm at the prospect of a whale-controlled DAO. Facing sustained community pressure, the Golden Boys agreed on approximately July 29–30, 2024 to rescind the passed proposal in exchange for the DAO instead developing an alternative COMP-staking product, under which a share of protocol reserves (reported as up to 30%) would be distributed to stakers; Humpy publicly endorsed the resolution. Independent research organizations, including DeSpread Research and Rekt News, subsequently cited the episode as an illustration of structural governance vulnerabilities common to token-weighted DAOs, in which sufficient capital can be used to acquire outsized voting power regardless of a proposal's substantive merit.","heading":"July–August 2024 Alleged Governance Attack — Humpy / 'Golden Boys' and Proposal 289","sources":[{"url":"https://www.theblock.co/post/307943/24-million-compound-finance-proposal-passed-by-whale-over-dao-objections","name":"$24 million Compound Finance proposal passed by whale over DAO objections","type":"news_article","credibility":2},{"url":"https://unchainedcrypto.com/humpy-accused-of-governance-attack-on-compound-finance-dao/","name":"DAO Delegate Group Accused of 'Governance Attack' on Compound Finance","type":"news_article","credibility":2},{"url":"https://www.coindesk.com/markets/2024/07/29/comp-down-67-after-supposed-governance-attack-on-compound-dao","name":"COMP Down 67% After Supposed Governance Attack on Compound DAO","type":"news_article","credibility":1},{"url":"https://www.coindesk.com/business/2024/07/30/comp-token-rises-as-whale-backs-down-on-supposed-governance-attack-on-compound","name":"COMP Token Rises as Whale Backs Down on Supposed Governance Attack on Compound","type":"news_article","credibility":1},{"url":"https://unchainedcrypto.com/compound-governance-attackers-agree-to-cancel-proposal-in-exchange-for-staking-product/","name":"Compound 'Governance Attackers' Agree to Cancel Proposal in Exchange for Staking Product","type":"news_article","credibility":2},{"url":"https://cointelegraph.com/news/golden-boys-behind-compound-governance-attack-agree-to-rescind-proposal","name":"'Golden Boys' behind Compound 'governance attack' agree to rescind proposal","type":"news_article","credibility":2},{"url":"https://rekt.news/the-humpy-dance","name":"The Humpy Dance","type":"research","credibility":2},{"url":"https://research.despread.io/compound-finance-governance-attack/","name":"Compound Finance Governance Attack (research)","type":"research","credibility":2},{"url":"https://thedefiant.io/news/defi/compound-governance-attack-reveals-inherent-vulnerabilities-of-daos","name":"Compound Governance Attack Reveals Inherent Vulnerabilities of DAOs","type":"news_article","credibility":2},{"url":"https://compound.finance/governance/proposals/289","name":"Compound Governance Proposal Detail #289","type":"official","credibility":1}],"severity":"high"},{"content":"Compound's core lending contracts have undergone extensive third-party review: according to Compound's own security documentation, the protocol has been subject to nine professional security reviews since 2019 conducted by firms including Trail of Bits and OpenZeppelin, covering the core money-market contracts, governance modules, COMP token distribution, and integrations with assets such as USDT and DAI. Compound III ('Comet') was separately audited by OpenZeppelin and ChainSecurity and formally verified in partnership with Certora; OpenZeppelin's published audit flagged issues such as uninitialized implementation contracts, missing zero-address checks in configurator and rewards functions, and an unchecked price-feed assignment, all of which were addressed prior to or shortly after launch. Gauntlet has performed economic stress-testing and risk simulations for the protocol's collateral parameters, and Compound operates a public bug-bounty program through Immunefi. Despite this audit history, the 2021 Comptroller bug (Proposal 62) demonstrates that governance-approved code changes can bypass or evade standard audit coverage if not independently re-audited before deployment, and the 2023–2024 incidents show that off-chain infrastructure (social media accounts, DNS/domain registration) and governance/voting mechanics have historically been more exploitable than the core smart contracts themselves. To date there is no verified report of Compound's core lending/borrowing contracts being directly drained via a smart-contract exploit; the significant loss events on record are the 2021 token over-distribution, the 2023 phishing losses tied to the X account compromise, and losses to individual users who interacted with the phishing sites during the 2024 DNS hijack.","heading":"Security Audits and Protocol Safeguards","sources":[{"url":"https://docs.compound.finance/v2/security","name":"Compound v2 Docs — Security","type":"official","credibility":1},{"url":"https://www.openzeppelin.com/news/compound-iii-audit","name":"Compound III Audit","type":"research","credibility":2},{"url":"https://www.openzeppelin.com/news/compound-finance-patch-audit","name":"Compound Finance — Timelock Audit","type":"research","credibility":2},{"url":"https://blog.openzeppelin.com/compound-case-study-how-compound-secures-its-protocol-and-users","name":"Compound Case Study: How Compound Secures its Protocol and Users","type":"research","credibility":2}],"severity":"medium"},{"content":"Compound and its COMP governance token have not been the target of a confirmed SEC or CFTC enforcement action as of this writing, and no such action was identified in available reporting. However, legal commentary has repeatedly flagged COMP as a plausible candidate for classification as a security under the U.S. Howey test given its investment characteristics, price appreciation expectations, and (at least historically) reliance on the managerial efforts of Compound Labs and its founding team; this remains an analytical/legal-commentary position rather than a regulatory finding, and should be treated as an unresolved, alleged regulatory risk rather than an established fact. Separately, Compound founder Robert Leshner's newer venture, Superstate, has been built explicitly around U.S. regulatory compliance for tokenizing government bond funds, which industry commentary has read as an implicit acknowledgment of the regulatory uncertainty surrounding token-based DeFi structures like Compound's.","heading":"Regulatory Standing","sources":[{"url":"https://cointelegraph.com/news/could-compounds-governance-token-comp-be-deemed-a-security","name":"Could Compound's Governance Token COMP Be Deemed a Security?","type":"news_article","credibility":2},{"url":"https://fortune.com/crypto/2023/11/15/compound-founders-new-firm-superstate-14-million-modernize-investing-crypto-style-tools/","name":"Compound founder's new firm Superstate raises $14 million","type":"news_article","credibility":1}],"severity":"medium"},{"content":"Taken together, the December 2023 X account compromise and the July 2024 Squarespace DNS hijack of compound.finance illustrate a recurring pattern in which Compound's off-chain infrastructure — social media accounts and domain/DNS management — has proven more vulnerable than its audited on-chain contracts. In both cases, Compound's core protocol and user deposits held within the smart contracts were not directly compromised; losses were instead borne by individuals who were induced, via a spoofed but visually identical interface, to sign malicious transactions or send funds to attacker-controlled addresses. Security researchers (including ZachXBT and Officer's Notes) played a central role in publicly identifying both incidents in near real time, and outside firms (Krebs on Security, Bleeping Computer, Decrypt) documented that the July 2024 Squarespace hijack was not unique to Compound but part of a broader registrar-level vulnerability affecting over 100 crypto projects. The 2021 Comptroller bug and the 2024 governance-attack episode further show that Compound's governance process itself — while decentralized — has periodically been a point of systemic risk, whether through an unreviewed code change (2021) or coordinated open-market token accumulation to sway a treasury vote (2024). No single incident resulted in a loss of user-supplied collateral held by the protocol itself, but the cumulative frequency of operational-security and governance incidents across a three-year span is a material factor in assessing Compound's overall risk profile.","heading":"Pattern of Front-End and Operational Security Failures","sources":[{"url":"https://cointelegraph.com/news/compound-finance-x-twitter-account-hacked-posted-scam-link","name":"Compound Finance's X account hacked, promotes phishing site to steal crypto","type":"news_article","credibility":2},{"url":"https://krebsonsecurity.com/2024/07/researchers-weak-security-defaults-enabled-squarespace-domains-hijacks/","name":"Researchers: Weak Security Defaults Enabled Squarespace Domains Hijacks","type":"news_article","credibility":1},{"url":"https://blocmates.com/news-posts/the-a-z-of-compound-finance-and-the-latest-governance-attack-allegations","name":"The A-Z of Compound Finance and the Latest Governance Attack Allegations","type":"other","credibility":3},{"url":"https://research.despread.io/compound-finance-governance-attack/","name":"Compound Finance Governance Attack (research)","type":"research","credibility":2}],"severity":"medium"},{"content":"Compound's total value locked (TVL) has declined substantially from its DeFi-summer-era peak, reportedly falling roughly 90% from about $12 billion in September 2021 to approximately $1.2–1.5 billion by mid-to-late 2026, with the protocol losing significant market share to competitors such as Aave. In August 2026, the Compound DAO approved what was reported as its largest-ever budget — $52 million — to fund an institutional pivot, including real-world-asset integrations and credit infrastructure for traditional finance, alongside the appointment of new Compound Foundation leadership drawn from Coinbase Custody, Near Foundation, and Maple Finance. Separately, DAO governance discussions in late 2025 included a proposal to pause borrowing and minting on the older Compound v2 markets, an indication that the protocol is moving to deprecate legacy infrastructure in favor of Compound III. These developments reflect a protocol in a period of strategic transition rather than acute financial distress; no insolvency, protocol-level hack, or loss of user deposits has been reported in connection with the TVL decline itself.","heading":"Current Status and Financial Trajectory (2025–2026)","sources":[{"url":"https://www.coindesk.com/business/2026/08/17/compound-bets-usd52-million-new-leadership-team-in-switch-to-institutional-focus","name":"Compound bets $52 million, new leadership team in switch to institutional focus","type":"news_article","credibility":1},{"url":"https://thedefiant.io/news/defi/compound-foundation-52m-institutional-credit-leadership","name":"Compound Foundation Names Coinbase And Anchorage Alumni To Run $52 Million Institutional Push","type":"news_article","credibility":2},{"url":"https://defillama.com/protocol/compound-finance","name":"Compound Finance TVL, Fees & Revenue","type":"on_chain","credibility":2}],"severity":"medium"}],"timeline":[{"date":"2018","event":"Compound Finance protocol launches on Ethereum, founded by Robert Leshner and Geoffrey Hayes.","source":"CoinDesk / The Block funding coverage","source_url":"https://www.theblock.co/post/47158/a16z-paradigm-back-compounds-25m-series-a-to-integrate-with-crypto-exchanges-and-brokers"},{"date":"2019-11","event":"Compound closes a $25 million Series A round led by Andreessen Horowitz, with participation from Paradigm, Bain Capital Ventures and Polychain Capital.","source":"CoinDesk","source_url":"https://www.coindesk.com/tech/2019/11/14/defi-startup-compound-finance-raises-25-million-series-a-led-by-a16z"},{"date":"2020","event":"Compound launches the COMP governance token and transitions protocol control to a DAO, helping spark the 2020 'DeFi summer' and yield-farming trend.","source":"General industry reporting","source_url":"https://www.coindesk.com/tech/2019/11/14/defi-startup-compound-finance-raises-25-million-series-a-led-by-a16z"},{"date":"2021-09","event":"Compound Governance Proposal 62 goes live and introduces a bug in the Comptroller contract, causing large over-distribution of COMP tokens.","source":"Robert Leshner on X; CoinDesk","source_url":"https://www.coindesk.com/tech/2021/09/30/defi-money-market-compound-overpays-15m-in-comp-rewards-in-possible-exploit","date_evidence":"\"A few hours ago, Proposal 62 went into effect, updating the Comptroller contract, which distributes COMP to users of the protocol. The new Comptroller contract contains a bug, causing some users to receive far too much COMP.\"","date_original":"2021-09-30"},{"date":"2021-10","event":"A governance proposal to patch the Comptroller bug is submitted.","source":"Neptune Mutual analysis / community reporting","source_url":"https://www.coindesk.com/business/2021/10/03/66m-in-tokens-added-to-recently-hacked-still-vulnerable-compound-contract","date_original":"2021-10-02"},{"date":"2021-10","event":"Community governance vote approves further fixes to the Comptroller bug.","source":"Community/governance reporting","source_url":"https://www.coindesk.com/business/2021/10/03/66m-in-tokens-added-to-recently-hacked-still-vulnerable-compound-contract","date_original":"2021-10-09"},{"date":"2022-09","event":"Robert Leshner steps down as CEO of Compound Labs.","source":"The Defiant","source_url":"https://thedefiant.io/news/defi/compound-token-surges-after-ceo-steps-down-and-unveils-new-compliant-venture"},{"date":"2023-11","event":"Superstate, a new company founded by Robert Leshner focused on tokenizing traditional financial assets, raises a $14 million Series A round.","source":"Fortune","source_url":"https://fortune.com/crypto/2023/11/15/compound-founders-new-firm-superstate-14-million-modernize-investing-crypto-style-tools/"},{"date":"2023-12-29","event":"Compound Finance's official X account is compromised and used to post a phishing link disguised as a free COMP token giveaway.","source":"Bitget News / Cointelegraph","source_url":"https://www.bitget.com/news/detail/12560603865604","date_evidence":"\"At 4:57 p.m. UTC, the account posted an advertisement for 'free $COMP tokens,' urging readers to click a link provided\" ... \"Officer's Notes warned at 5:14 UTC on December 29, 2023\""},{"date":"2023-12","event":"Compound Labs confirms the X account was compromised for approximately four hours before being recovered.","source":"Cointelegraph","source_url":"https://cointelegraph.com/news/compound-finance-x-twitter-account-hacked-posted-scam-link","date_original":"2023-12-30"},{"date":"2024-07","event":"Coordinated DNS hijacking attacks targeting crypto platforms registered with Squarespace begin, eventually affecting Compound Finance's domain along with Celer Network, Pendle Finance and others.","source":"Krebs on Security","source_url":"https://krebsonsecurity.com/2024/07/researchers-weak-security-defaults-enabled-squarespace-domains-hijacks/","date_original":"2024-07-09"},{"date":"2024-07-11","event":"Compound Labs publicly confirms its website was hijacked and redirected to a phishing page; ZachXBT is credited with first flagging the compromise.","source":"CryptoTimes / Cointelegraph","source_url":"https://www.cryptotimes.io/2024/07/11/compound-finance-website-hijacked-for-phishing-scam/","date_evidence":"Compound Labs issued an urgent warning via its official X account at 5:15 AM EDT on July 11, confirming that a hack on their compound.finance site has occurred."},{"date":"2024-07","event":"Compound Governance Proposal 289, allocating $24 million in COMP to a 'Golden Boys'-controlled goldCOMP vehicle, narrowly passes amid allegations of a coordinated governance attack.","source":"The Block","source_url":"https://www.theblock.co/post/307943/24-million-compound-finance-proposal-passed-by-whale-over-dao-objections","date_evidence":"the proposal passed \"by a vote of 682,191 to 633,636 on Sunday\"","date_original":"2024-07-28"},{"date":"2024-07","event":"COMP token price falls sharply (reported down as much as 67%) amid market alarm over the governance attack allegations.","source":"CoinDesk","source_url":"https://www.coindesk.com/markets/2024/07/29/comp-down-67-after-supposed-governance-attack-on-compound-dao","date_original":"2024-07-29"},{"date":"2024-07","event":"Humpy and the 'Golden Boys' agree to rescind Proposal 289 in exchange for the DAO developing an alternative COMP-staking product; COMP price recovers.","source":"CoinDesk / Unchained","source_url":"https://www.coindesk.com/business/2024/07/30/comp-token-rises-as-whale-backs-down-on-supposed-governance-attack-on-compound","date_original":"2024-07-30"},{"date":"2025-12","event":"Compound governance begins voting on a proposal to pause borrowing/minting on legacy Compound v2 markets, signaling a move to deprecate v2 in favor of Compound III.","source":"CoinMarketCap / industry reporting","source_url":"https://coinmarketcap.com/cmc-ai/compound/latest-updates/"},{"date":"2026-08","event":"Compound DAO approves a $52 million budget — its largest ever — to fund an institutional-focused pivot amid a roughly 90% decline in TVL from its 2021 peak, alongside new Foundation leadership.","source":"CoinDesk","source_url":"https://www.coindesk.com/business/2026/08/17/compound-bets-usd52-million-new-leadership-team-in-switch-to-institutional-focus"}],"sources_used":[{"url":"https://www.coindesk.com/tech/2019/11/14/defi-startup-compound-finance-raises-25-million-series-a-led-by-a16z","name":"DeFi Startup Compound Finance Raises $25 Million Series A Led by A16z","type":"news_article","archive_url":"http://web.archive.org/web/20260412133200/https://www.coindesk.com/tech/2019/11/14/defi-startup-compound-finance-raises-25-million-series-a-led-by-a16z","credibility":2,"archive_timestamp":"2026-04-12T13:32:00+00:00"},{"url":"https://www.theblock.co/post/47158/a16z-paradigm-back-compounds-25m-series-a-to-integrate-with-crypto-exchanges-and-brokers","name":"a16z, Paradigm back Compound's $25M Series A to integrate with crypto exchanges and 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