Cryptocurrency platform encountered a technical error, $90 million suddenly fell into the user's pocket

The founder of the platform then took to social media to ask these users to return their money, or else threaten to report it to the US Internal Revenue Service.

Cryptocurrency platform encountered a technical error, $90 million suddenly fell into the user's pocket
Cryptocurrency platform encountered a technical error, $90 million suddenly fell into the user's pocket

Compound (COMP token) is an Ethereum-based money market protocol that allows users to earn interest or borrow assets against collateral. Lenders can offer assets to Compound's liquidity pool and start earning compound interest, with interest rates automatically regulated by supply and demand.

But on September 30, due to an error in the upgrade process, this decentralized finance (DeFi) platform distributed $90 million worth of COMP assets to its users. .

As a result, the founder of Compound, Robert Leshner, appealed to users who received the mistakenly delivered cryptocurrency to return them. To incentivize users, Leshner claims that for those who make a refund, they can keep 10% as a bonus. But for those who intentionally want to intercept, the results will not be good.

"If you don't return it, the money will be reported as income to the IRS, and most of you will be upset," the platform's founder threatened further.

Tweet from the founder of the DeFi Compound platform.
Tweet from the founder of the DeFi Compound platform.

According to feedback from the community, the Compound founder's last message could backfire, as threats and defiance could cause some users to refuse to accept refunds.

"Wow... this is embarrassing. A plea surrounded by a threat, fueled by a lack of privacy," blockchain engineer Assaf Morami responded to Leshner's tweet.

Tech entrepreneur Ryan Lackey also said: "This is how to make people who might be willing to help you stop."

Technical errors make it difficult to recover the $90 million.
Technical errors make it difficult to recover the $90 million.

After news of the $90 million mistake was leaked, the value of the Compound (COMP) coin fell about 13% within 24 hours.

Because the Compound protocol requires a seven-day administrative process before any changes can be made, Compound's only option at this point is to wait for users and hope they return the funds. produce. As of the afternoon of the same day, according to a report from CoinDesk, there have been 2 users who have returned a total of 37,493 COMP, worth more than 12 million USD. However, there are no other similar reports.

The odds seem to be in favor of the platform, though. Because in the last two crypto thefts, most of the lost money has been returned to the previous owner. DeFi Poly Network platform attackers returned the stolen $611 million. SushiSwap's MISO platform was also able to recover $3 million worth of funds lost in an insider attack.

But, the obvious difference is that both cases are related to criminal activity. In the case of Compound, due to the nature of the technical glitch, many of the people who received this crypto weren't hackers - they just happened to win the jackpot.

Google Tech News - Bleepingcomputer

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