Analyst: Compound Foundation accused of 'misappropriating' funds from DAO
2026-09-29 19:23:25
According to CoinMeta, the decentralized lending protocol Compound Finance has once again become embroiled in a controversy related to DAO. A community member named “ugurmersin” accused Compound Foundation of misappropriating 8.42 million DAI, which was used to purchase 344,780 COMP tokens, and then entrusted to the foundation’s voting address. These tokens were subsequently used to vote in favor of two proposals, one of which involved transferring 14 million US dollars to the foundation for the development of the V4 protocol. The foundation responded that its actions complied with the conditions stipulated for the allocation of funds. Proposal 536 allowed the use of DAI to “meet important protocol needs in a prudent manner,” but did not specify the management procedures for the use of the funds. ugurmersin questioned the foundation’s use of these funds for voting, arguing that there were control issues involved. The foundation responded on its forum that Proposal 536 did not specify how the funds should be used and only excluded unnecessary operations such as “speculative trading.” ugurmersin later argued that the foundation directly transferred 100,000 COMP tokens back to Binance after the votes were passed.
Source:Protos
This content is for market information only and does not constitute investment advice.
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