As a crypto investor with some experience under my belt, I can’t help but feel a pang of unease reading about the Compound Finance website hijacking incident. It’s a chilling reminder of how vulnerable we are to cyber attacks in this space.
As a researcher, I came across a noteworthy report by PeckShield on July 11 regarding Compound Finance’s compromised website (compound.finance).
“Do not interact with the website until further notice,” it warned.
According to the findings of renowned blockchain detective ‘ZachXBT’ in his Telegram channel, it appears that the Compound Finance website might have been taken over unlawfully. His recommendation is for people to avoid accessing the site temporarily.
It “currently redirects to a newly registered phishing site,” he cautioned.
Warning: The URL for compound.finance on PeckShield Alert has been hacked. Avoid using the site until more information becomes available.
— PeckShieldAlert (@PeckShieldAlert) July 11, 2024
Domain Hijacking
When CryptoPotato attempted to visit the site, they found it inaccessible, implying that the team may have temporarily removed it from the internet.
The Compound Labs X account didn’t provide any information regarding the recent incident. It’s uncertain if any users have suffered financial losses as a result.
As a domain name analyst, I would describe domain name hijacking as the unlawful seizure of control over another entity’s domain name. Hackers accomplish this illicit act by penetrating the security measures surrounding a website’s domain registration. Once gained access, they manipulate the domain settings to misdirect users towards fraudulent websites that may appear trustworthy but are designed to steal sensitive information or spread malware.
As a researcher, I’ve found that attackers often gain unauthorized access to domain registrar accounts by employing social engineering techniques or phishing attacks. Alternatively, they may exploit vulnerabilities within the domain management system. Regrettably, no additional details regarding this specific incident were available at the time of my investigation.
Crypto platforms are frequent targets for hackers who aim to obtain confidential information from users. They achieve this by creating deceitful websites that mimic the real ones, enticing users to enter their login credentials or personal details. Alternatively, these cybercriminals may distribute malware designed to pilfer crypto assets.
In November, the decentralized cross-chain protocol Frax Finance experienced a domain hijacking incident similar to what happened before.
Compound Finance is a DeFi lending platform that uses algorithmic, autonomous interest rates.
The current value locked within it amounts to $2.17 billion, marking an 83% decrease from its all-time high in November 2021, as reported by DeFiLlama.
COMP Price Reaction
The price of the Decentralized Finance (DeFi) platform’s native token, COMP, didn’t show any response to the reported website hijacking incident and stayed unchanged, with a value of around $47.88 during my current update.
Like many Decentralized Finance (DeFi) assets, COMP has experienced significant price decreases since its all-time high. As of now, its value is approximately 95% lower than its previous peak of $910, as reported by CoinGecko.
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2024-07-11 12:53