DeFi Protocol Firm Compound CEO Offers Users 10% of Funds Sent by Mistake


Compound Labs, which accidentally sent users a combined $90 million from its DeFi system because of a glitch, is offering to let users keep 10 percent of the money if they voluntarily return it.

And because of the way blockchain works, there’s no way for Compound to get its money back, which has led to the company offering a deal – if users give back the money voluntarily, they can keep 10 percent of what they erroneously got.

Robert Leshner, the DeFi’s founder, said those who returned the money of their own will could be “white hats.”

Leshner had also implored those who received the funds to return them under the threat of the company reporting those people to the IRS.

“Most of you are doxxed,” he wrote on Sept. 30.

Several users of the DeFi Compound have received, accidentally, large sums of money from the platform, as the company accidentally sent out 280,000 COMP, or $90 million to random users because of a bug, Mashable reports.

What happened, according to the report, was that the update to the Comptroller contract that gives out COMP had a bug that ended up sending out “far too much” of the currency.

The result ended up with users randomly waking up finding as much as 70 million COMP, or near $300, and another finding the equivalent of $29 million in their account.

Leshner reportedly said he considers the dilemma a moral one for users.

The Mashable report calls the threats “bizarre” as Leshner seems to be saying that the money wouldn’t need to be taxed if the users complied with what Compound wanted. And in regards to the “doxxing” idea, the report says Compound doesn’t collect user information – making this an empty threat.

Two users, as of Friday (Oct. 1), had returned around $12 million worth in Compound, the report says.

Read more: DeFi Protocol Compound Begs Users to Return Accidental $90M Payout