Diffie Pioneer Compound Finance is a victim of domain hacking.
On July 11, blockchain security firm PeckShield reported on the Compound Financial (Compound) website.[.]finance) is broken.
“Do not link to the website for further advertising,” he warned.
The raid was reported by blockchain sleuth ‘ZachXBT' on his investigative Telegram channel. “Do not visit the site for now,” before saying that the Compound Financial website “appears to be hackable.”
“Currently moving to a newly registered phishing site,” he warned.
#PeckShieldAlert premises[.]Finance URL has been violated. *DO NOT* connect to the website until further notice.
— PeckShieldAlert (@PeckShieldAlert) July 11, 2024
Domain hacking
The website was unavailable when CryptoPotato tried to access it, suggesting the group may have taken it down.
There was nothing about the incident on the official Compound Labs X account. It is currently unclear whether any users have lost their money in the crash.
Domain name spoofing is when hackers obtain an unauthorized website address and redirect users to a fraudulent website.
It is usually done through social engineering or phishing attacks by compromising a domain registrar's account or exploiting vulnerabilities in the domain management system. However, at the time of writing, no further information is available.
Hackers often target users by redirecting them to fake sites to steal sensitive information, collect login credentials or personal information, or distribute malware that can steal crypto assets.
In November, decentralized cross-chain protocol Frax Finance suffered a similar domain hacking attack.
Compound Finance is a DeFi lending platform that uses algorithmic, automated interest rates.
Total value is currently locked in at $2.17 billion, down 83% from its peak in November 2021, according to DeFillama.
COMP price response
DeFi platform's native token COMP did not respond to the website hack and remained flat on the day, trading at $47.88 at the time of writing.
However, like most DeFi assets, it has been hit hard since its all-time high. COMP is currently down 95% from its peak of $910 in May 2021, according to CoinGecko.
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