Compound Price Falls After a Major Bug Causes Loss of Funds

by in DeFi News

DeFi Compound bug

Recently, DeFi lending and borrowing protocol Compound has been facing problems. It all started when a system upgrade has gone wrong.

Related: Jake Cherwinski announces resignation from Compound Labs

On October 1, the news came that over $90 M was sent to users accidentally. Compound CEO Robert Lesher urged people who received tokens, send them back. Otherwise, it will be reported as an income to the Internal Revenue Service, and most of the users' identities will be revealed.

Moreover, later it turned out that the platform is at risk to lose many funds.

On Sunday, Lesher tweeted that in total around 490.000 COMP is at risk, 136.000 of which is still under the control of Compound's risk management layer Comptroller. In the same tweet, the executive thanked users who returned around 117.000 tokens.

The price of Compound's native token COMP fell by nearly 12% in the last 7 days. Currently, it trades at around $324.