Other DeFi [Decentralized Finance] project was rug-pulled earlier on Tuesday, with some $10.8 Mln in investor funds hacked due to a hidden backdoor within the project’s smart contracts.
Compounder Finance – a self-described just like Harvest and Yearn Finance built by pseudonymous programmers – had its contracts drained of $750k worth of wrapped bitcoin [WBTC], $4.8 Mln Ethereum, $5 Mln dai & a small assortment of other tokens, consistent with an address related to the exploit.
And while the attack looks almost like other DeFi rug-pulls or exploits, performed time and time again this year, while the act of thievery is different due to the apparent con Compounder’s developers were playing, consistent with Robert Leshner, founder of lending protocol Compound Finance.
Within an official interview, Leshner added that Compounder seemed like the other yield farming DeFi project that took the cryptocurrency industry by storm this past summer. But the developers had snuck within a call function that permitted them to withdraw all funds from the project – an action a DeFi project should never permit – whenever they deemed the booty large enough.
That threshold was apparently met Tuesday, though Compounder’s token contracts were solely created on 10th Nov., consistent with Etherscan.
Leshner called the rug-pull “one of the most important” purposeful cryptocurrency exploits in recent memory; an exploit categorically different from other DeFi exploits due to its patient endgame. He also alleges that Compounder “impersonated [Compound Finance’s] name” so as to lure in additional victims.
A Telegram group of investors is presently investigating legal moves against the developers, although little information is understood about the faces behind Compounder. One investor who claims to possess lost $1 Mln in funds is offering a $50k bounty for information resulting in the seizure of stolen funds.
Compounder’s native token, CP3R, is down 98.8% within the last 24 hours and is presently trading at a price around $0.24 USD, consistent with CoinGecko.