Compound CEO began to threaten users with data leak
The DeFi community scoffed at the CEO of Compound, which suffered yesterday, after he threatened the IRS in his tweet, attaching the details of those who would not return the money they received as a result of the error.
Yesterday, the Compound landing protocol team announced a bug in the distribution of its own COMP tokens. The trigger for this, according to company representatives, was the activation of RFP-062. The innovation was supposed to take effect on September 30, changing the already established model of splitting COMP tokens 50/50 to a new one, when liquidity providers and those who issue loans must receive a certain amount of COMP, calculated by a special coefficient.
As a result, something went wrong and the CEO of the project, Robert Leshner, announced the misappropriation of Compound funds by some community members. Before him, one of the Twitter users under the nickname @napgener drew attention to the error, having noticed suspicious transactions. Based on these, clients received from Compound about $15 million in the equivalent of COMP for loans and the supply of liquidity in DAI, USDC, and ETH.
A little later, a transaction of the recipient in the amount of 91,000 COMP, equivalent to $26.8 million for the zero liquidity provided to them, was discovered on the blockchain. To receive this amount, the anonymous person had to pay a gas fee of $157.77. Shortly thereafter, community members noticed that this address had exchanged some of the COMPs received for 140,000 USDC.
Robert Leshner hastened to reassure the community by confirming that their funds are safe, and the maximum loss can reach no more than 280,000 COMP, which is equivalent to about $90.46 million at current exchange rates. However, yesterday the number of tokens in the Comptroller wallet dropped to 3,721 COMP (about $1.2 million).
Today Leshner's calmness has been replaced by anger. In his Twitter account, he stated that he would complain to the tax authorities about those who refuse to return 90% of the amount of the COMP tokens received earlier by mistake. At the same time, according to him, users could keep 10% for themselves. In addition, Leshner threatened the release of personal data of those who did not agree with the conditions put forward. Although later the CEO himself called the words about the tax “stupid tweet”.
If you received a large, incorrect amount of COMP from the Compound protocol error:— Robert Leshner (@rleshner) October 1, 2021
Please return it to the Compound Timelock (0x6d903f6003cca6255D85CcA4D3B5E5146dC33925). Keep 10% as a white-hat.
Otherwise, it's being reported as income to the IRS, and most of you are doxxed.
His opinion, apparently, was spoiled by the reaction of the crypto community on the network. Many laughed at the head of Compound because of his threats and pointed out that the tax authorities would force those who received tens of thousands of COMPs to return only 40% of the amount for free, and not 90%, which Leshner demanded. Therefore, according to this logic, it would be easier for clients to go straight to the tax office themselves and keep 60% of the money received. This is the softest argument from the stream of name-calling that poured out on Leshner, and his attitude to what happened was called "the worst possible." CSO Blockstream Samson Mow ironically noted that Compound believes “the code is law” until they screw up, after which they use threats to exploit customer and IRS data.
Code is law.— Samson Mow (@Excellion) October 1, 2021
Unless we fuck up.
Then we call the IRS on you. https://t.co/8uMur7P7OT
Another blow to the team today was the departure of their general counsel, Jake Chervinsky. He said that yesterday he worked his last day at the company in a post he has held for more than 2.5 years. Someone on Twitter noticed that Chervinsky was able to choose the perfect moment to leave, citing a “nervous tweet” from the head of Compound. Others began to joke that he left to work for the IRS, where Leshner had previously threatened to complain.
The COMP tokens themselves feel pretty good. After yesterday's fall, their value has grown by almost 10% and is more than $323 at the moment.
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