DeFi
DeFi Pioneer Compound Finance Victim of Domain Hijacking
On July 11, blockchain security firm PeckShield reported that the Compound Finance website (compound[.](finances) had been compromised.
“Do not interact with the site until further notice,” he warns.
The intrusion was also reported by blockchain sleuth “ZachXBT” on his investigative Telegram channel. The Compound Finance website appears to be “potentially hacked,” he said, adding, “Do not visit the site at this time.”
“It is currently redirecting to a newly registered phishing site,” he warned.
Domain hijacking
The website was unavailable when CryptoPotato tried to access it, suggesting that the team may have taken it down.
There was no information about the incident on the official Compound Labs X account. It is currently unknown if any users lost funds due to the incident.
Domain name hijacking occurs when hackers gain unauthorized access and control over a website’s domain name in order to redirect its users to a fraudulent site.
This is usually done by compromising domain registrar account through social engineering or phishing attacks, or by exploiting vulnerabilities in the domain management system. However, no additional information was available about this incident at the time of writing.
Hackers often target crypto platforms to steal sensitive information by redirecting users to a fake site to collect login credentials or personal data or to distribute malware that can steal crypto assets.
In November, decentralized cross-chain protocol Frax Finance suffered a similar domain hijacking attack.
Compound Finance is a DeFi lending platform that uses algorithmic and autonomous interest rates.
Its total value locked currently stands at $2.17 billion, down 83% from record levels in November 2021, according to to DeFiLlama.
COMP Price Reaction
The DeFi platform’s native token, COMP, remained unaffected by the website hack and remained stable throughout the day, trading at $47.88 at the time of writing.
However, like most DeFi assets, it has taken a big hit from its all-time high. COMP is currently down nearly 95% from its May 2021 high of $910, according to CoinGecko.