The decentralized crypto finance platform “Compound” has been randomly distributing a gigantic sum of its own cryptocurrency to its users due to a bug that crept in when the protocol was updated. In total, some $162 million would have been distributed in the form of the COMP token, representing the largest capital loss of such a crypto company.
A puzzled user of the platform reported on Twitter for example, he suddenly found nearly $21 million worth of COMP in his wallet alone. However, unlike erroneous bank transfers, it is not possible for the company to easily identify the recipient and easily refund the lost virtual money. Because of the way blockchain works, it would have to be “rolled back” 51 percent, according to a report from CNBC, which seems almost impossible.
The entire composite protocol is worth a total of $10.3 billion, making it more or less easy to absorb the loss of this three-digit million amount in the end. The founder of Compound Labs nevertheless urged users to return the accidentally scattered COMP tokens. He did offer a 10 percent finder’s fee, but for that he used his language badly and even made threats. Affected users can theoretically still decide to keep all virtual money. Apart from the associated tax payments, the lucky few, who can be equated with lottery winners, probably have no consequences to fear.