Compounder Finance
Summary
Compounder Finance was an Ethereum-based DeFi yield aggregator that launched in November 2020 and executed a deliberate rug pull approximately 22 days later, stealing between $10.8 million and $12.5 million from investors. Anonymous developers embedded hidden 'Evil Strategy' smart contracts behind a publicly visible but unmonitored 24-hour timelock, then drained all user funds and deleted the project's website and social media accounts. No funds were recovered and the perpetrators have never been publicly identified.
Connected Entities
1 entitiesTimeline(8 events)
2020-11-08
Compounder Finance smart contract deployed on Ethereum (CP3R token contract: 0x7ef1081ecc8b5b5b130656a41d4ce4f89dbbcc8c).
2020-11-19
Solidity Finance releases audit report, flagging centralized developer control over strategy pools via a 24-hour timelock but concluding the protocol is safe from external attacks.
2020-11-19
In the weeks following the audit, developers begin deploying malicious 'Evil Strategy' contracts through the publicly visible but unmonitored timelock.
2020-12-01
Developers execute the rug pull, calling inCaseStrategyTokenGetStuck() across seven malicious strategy contracts and draining all user funds. Website, Twitter, Medium, and Discord are deleted.
2020-12-02
CoinDesk reports $10.8 million stolen; Compound Finance founder Robert Leshner publicly condemns the scheme and confirms no affiliation.
2020-12-02
CP3R token collapses approximately 98.8% in 24 hours, trading at $0.24.
2020-12-03
Decrypt reports Solidity Finance received death threats within 36 hours of the rug pull. DeFiYield.info — which claims $1 million in losses — announces a $50,000 bounty for information leading to fund recovery and organizes a Telegram victim group.
2020-12-03
Solidity Finance publicly acknowledges it should have been clearer about the implications of developer-controlled admin keys and commits to more robust future disclosures.
Decision Log
- hash: FP9jCKcrv7dJ7C81eedJR9cELr4src1QcwtuZh8EG6zc
This investigation is cryptographically anchored to the Solana blockchain and source URLs are archived via the Internet Archive.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:59 AM
last updated: 5/25/2026, 5:34:24 PM
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