$89 Million In Cryptocurrency Accidentally Deposited To Users On Compound Platform

A botched system update on the cryptocurrency trading platform, Compound, resulted in roughly $89 million worth of digital tokens being accidentally sent to users.

Compound allows users to lend out their crypto assets and gain interest. Since the program is managed by a shared network of users and not the company itself, there are no admin controls in place for Compound to reverse the distribution of the cryptocurrency.

Robert Leshner, the founder and CEO of Compound, is now pleading with users to return the COMP that was mistakenly given to them.

“If you received a large, incorrect amount of COMP from the Compound protocol error: Please return it to the Compound Timelock,” Leshner tweeted. He followed up with a threat to report users to the IRS who failed to return the digital tokens.

Several users have since returned the cryptocurrency, with Leshner personally thanking them on Twitter.

In light of the massive glitch, Leshner told CoinDesk that the accident had been “the worst day in the history of the Compound protocol.”

“What makes it way worse is that I and most folks are completely powerless to do anything besides sit back and watch this moral dilemma play out,” he added.

A total of 37,493 COMP tokens worth over $12 million have been returned so far.

If you received a large, incorrect amount of COMP from the Compound protocol error:

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.

— Robert Leshner (@rleshner) October 1, 2021