DeFi Pioneer Compound Finance is a victim of domain hijacking

On July 11, blockchain security firm PeckShield reported that the website of Compound Finance (compound(.)finance) had been compromised.

“Do not interact with the website until further notice,” it warned.

The raid was also reported by blockchain researcher ‘ZachXBT’ on his research Telegram channel. Compound Finance’s website appears “potentially hijacked,” it said before adding, “do not visit the site at this time.”

“It currently redirects to a recently registered phishing site,” it warned.

#PeckShieldAlert Composite Funding URL(.) has been compromised. *DO NOT* interact with the website until further notice. https://t.co/UL5GxQpave

— PeckShieldAlert (@PeckShieldAlert) July 11, 2024

Hijacking of domains

The website was unavailable when CryptoPotato attempted to access it, suggesting that the team may have taken it down.

There was nothing about the incident on the official Compound Labs X account. It is currently unclear if any users have lost funds due to the incident.

Domain name hijacking is when hackers gain unauthorized access and control over a website’s domain name to redirect its users to a fraudulent site.

This is usually done by compromising the domain registrar’s account through social engineering or phishing attacks, or by exploiting vulnerabilities in the domain management system. However, no further information was available on this incident at the time of writing.

Hackers often target crypto platforms in order to steal sensitive information by redirecting users to a fake site to collect login credentials or personal data or to spread malware that could steal crypto assets.

In November, the 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.

It currently has a total locked-in value of $2.17 billion, which is 83% below November 2021 peak levels, according to DeFiLlama.

Price reaction COMP

The DeFi platform’s native token COMP has not reacted to the website hijacking and was flat on the day, trading at $47.88 at the time of writing.

However, like most DeFi assets, it has been badly battered since its all-time high. According to CoinGecko, COMP is down nearly 95% from its all-time high of $910 in May 2021.

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