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Bug causes crypto platform to accidentally send tokens worth US$162 million to users' wallets

Thanks to a software glitch on the crypto platform Compound, there are now a few more multimillionaires in the world (Image: Art Rachen)
Thanks to a software glitch on the crypto platform Compound, there are now a few more multimillionaires in the world (Image: Art Rachen)
Since the unexpected wealth cannot be easily reclaimed by the crypto company, the world now apparently has a few more crypto millionaires who will probably have to pay lots of taxes on their huge prize.

The decentralized crypto financing platform Compound has lost an enormous amount of its own crypto currency due to a bug in an update to its protocol. According to a report by CNBC, US$162 million of COMP tokens have been issued to users of the platform, which is the largest fund loss by a crypto company of this type.

One flabbergasted user for example reported on Twitter that he unexpectedly found US$21 million worth of COMP tokens in his wallet. In comparison to erroneous wire transfers or bank deposits, the tokens cannot be easily reclaimed by the company. In order to do so, Compound would have to roll back 51 percent of the blockchain, which appears unreasonable if not impossible.

The Compound protocol has a value of approximately US$10.3 billion, which means that such a loss can be absorbed more or less easily. However, the founder of Compound Labs asked users to return the tokens and offered a finder's reward of 10 percent, but prior to that he threatened that income tax returns would somehow doxx everyone who decides not to comply. Nevertheless, affected users absolutely have the option to hold on to their tokens. Except for the applicable taxes in the country of their residence, users probably won't have to fear any consequences for their unexpected prosperity.

Buy the Trezor Model One Crypto Hardware Wallet on Amazon

Source(s)

CNBC, Image: Art Rachen

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Enrico Frahn
Editor of the original article: Enrico Frahn - Tech Writer - 932 articles published on Notebookcheck since 2021
My fascination for technology goes back a long way to the Pentium II era. Modding, overclocking and treasuring computer hardware has since become an integral part of my life. As a student, I further developed a keen interest in mobile technologies that can make the stressful college life so much easier. After I fell in love with the creation of digital content while working in a marketing position, I now scour the web to bring you the most exciting topics in the world of tech. Outside the office, I’m particularly passionate about motorsports and mountain biking.
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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2021 10 > Bug causes crypto platform to accidentally send tokens worth US$162 million to users' wallets
Enrico Frahn, 2021-10- 5 (Update: 2021-10- 5)