Compound Foundation Accused of Misusing $8.4M in DAI Reserves
A controversy has erupted around the Compound Foundation after an allegation of misappropriation was made by a delegate. The claim states that the Foundation quietly converted $8.4 million in DAI from reserves into COMP tokens, violating terms set forth in Proposal 536.
The funds were intended to support protocol operations and remain entirely DAO-owned. However, blockchain records reportedly show that the money was used for unauthorized purposes.
According to the delegate, Ugurmersin, the $8.4 million DAI was swapped for 344,780 COMP on an exchange, returned to the Foundation's voting address, and then allegedly used to sway governance decisions. The tokens were returned 58 minutes before voting closed on Proposals 580 and 582.
The Compound Growth Working Group, security firm Certora, and auditor ChainSecurity have all been named as supporters of the moves. Cryptopolitan could not independently verify the transaction claims, and the Foundation has not responded to the accusation.