Compound Finance has suffered a security breach on its website. In a Thursday post on X, the security adviser of Compound Finance DAO, Michael Lewellen confirmed the attack.
In the post, Lewellen revealed that the URL of the platform has been breached. Also, the security adviser added that the present site is currently hosting a phishing website.
Lewellen went on to urge users to avoid interacting with the site in the meantime. However, he confirmed that the protocol was intact and it didn’t suffer any attack. Due to that, Lewellen assured community members that users’ funds were safe.
It is worth mentioning that well-known crypto and blockchain security expert, ZachXBT also urged users to avoid using the Compound Finance website in the meantime. According to the investigator, the website appears to have been hacked and could redirect users to a phishing site.
The investigator took to Telegram on Thursday to warn community members about the breach. He disclosed that accessing the website at the moment poses some security implications. As of press time, Compound Finance has not issued a statement regarding the attack or given an account of how the attack manifested.
How Compound Finance Suffered A Security Breach in 2023
Meanwhile, this isn’t the first time Compound Finance has been a victim of a security attack. Recall that in 2023, hackers took over the official X page of Compound Finance. Following the attack, the bad actors used the page to host a phishing site.
In a statement during the year, the Compound Finance team admitted that its system was bridged for about four hours before it could reclaim it. Thereafter, the team informed its users that they had cleared the spam messages.
Increasing Crypto Phishing Attack
It is worth mentioning that crypto phishing exploits have been on the rise in 2024. During the first half of the year, crypto phishing exploits hit $341 million, exceeding the $295 million hackers stole from their victims in 2023 using the method.
A leading security expert and founder of SlowMist, Yu Xian discussed how hackers are making huge profits by using the breaching system. Xian revealed how 20 large accounts have suffered a loss of more than $1 million due to phishing attacks.
According to the expert, about 260,000 wallets lost $314 million across all EVM-compatible networks from January to June 2024. Xian estimated that the top 20 victims lost $58 million in total and most of the victims fell to phishing attacks.
Read More: