The founder and chief executive of a lending and borrowing protocol says protocol error is to blame for the accidental distribution of tens of millions of dollars worth of crypto assets to investors.
In a tweet, Robert Leshner says that those who received a “large, incorrect” amount of Compound tokens (COMP) because of a bug should return the crypto assets. Otherwise, it will be reported as income to the Internal Revenue Service.
“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.”
The Compound CEO says that the maximum loss that the decentralized finance (DeFi) platform could suffer is 280,000 COMP tokens. According to CoinGecko, COMP is trading at nearly $330 at the time of writing, equalling a maximum possible loss of $92.4 million.
The error in distributing COMP tokens comes from a bug that emerged after Compound rolled out the Proposal 62 update. The upgrade is meant to correct a problem of undesirable market conditions caused by how the platform distributes COMP tokens.
“A few hours ago, Proposal 62 went into effect, updating the Comptroller contract, which distributes COMP to users of the protocol.
The new Comptroller contract contains a bug, causing some users to receive far too much COMP.”
The Compound CEO says that all the crypto assets locked on the DeFi platform’s smart contracts are safe.
“All supplied assets, borrowed assets, and positions are completely unaffected. Users don’t have to worry about their funds; the only risk is that you (or another user) receives an unfairly large quantity of COMP.”
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The post Altcoin Project Accidentally Sends $92,400,000 in Crypto to Investors, CEO Says Protocol Error Is To Blame appeared first on The Daily Hodl.
