Compound Finance Leadership Resigns Amid Hacking Incident

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Compound Finance Execs Depart Amid Website Hack Woes
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Compound Finance executives Jayson Hobby, Geoffrey Hayes, and Mykel Pereira exited the project in pursuit of a new venture. The announcement came a day before hackers commandeered the platform’s website.

As the prevalence of hackers in the crypto arena continues to grow, investor caution when interacting with links becomes more important.

Compound Finance Executives Abandon Project

In a Wednesday announcement, Jayson Hobby bid goodbye to Compound Finance and Compound Labs, exiting from his seat as CEO after five years with the company.

“Starting a new chapter means closing the last. I joined Compound Labs in 2019 as a design team of one, and today, am stepping down as CEO. I’m incredibly proud of the journey,” Hobby wrote.

Reminiscing his foray into the company, Hobby highlighted the Compound protocol’s role among the pioneers of decentralization. He acknowledged support from DeFi player Gauntlet in risk management and OpenZeppelin ecosystem stack in blockchain application development. Per the former Compound Finance executive, these collaborations made Compound Finance a “transparent, intermediary-free system.”

Minergate

Read more: What Is Compound Finance?

As Jayson Hobby descends from his seat as CEO of Compound Labs, he ascends into another, at Legend. The new venture advertises itself as the solution for user experience in blockchain. It is a decentralized platform for trading, earning, and borrowing digital assets, similar to Compound’s deposit, lend, and borrow functions.

 “Our mission is clear: bring the next 100M users onchain by building the world’s best DeFi interface,” Hobby noted, revealing the vision of their new venture, Legend.

The announcement came a day before the Compound Finance website was hacked, alongside the Celer platform.

Compound Labs Phishing Attack

On-chain detectives revealed hackers compromised Compound Finance’s front end on Thursday. Exploiters hosted a phishing site called the “compound-finance app.” The malicious site, a draining tool, would empty the funds of any user who interacted with it.

“URGENT: The Compound Labs website (compound[.]finance) has been compromised. Please do not visit the website or click any links until further notice. An update will be provided when available,” Compound Labs warned.

Notably, the phishing attack did not affect the Compound protocol, and user deposits remain safe. Nevertheless, the decentralized finance giant urged users not to interact with the website, noting that it was part of a widespread domain compromise. The issue has since been resolved, restoring the website’s security.

Compound Labs is one of the biggest DeFi services in the crypto industry. DeFiLlama data shows it is holding at least $2.14 billion worth of assets as of press time.

Read more: Crypto Project Security: A Guide to Early Threat Detection

Compound Finance TVL. Source: DefiLlama

Phishing attacks remain a prevalent challenge in the crypto industry, with bad actors using the mechanism to steal digital assets. Scammers often employ fake social media platforms, impersonating legitimate projects. In turn, the accounts display fake verification marks and share deceptive comments or links, all designed to lure users to interact with malicious websites and drain their assets.

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