If money is not returned, Compound Founder threatens to report an account that received $20 million by mistake to the IRS.

Compound Founder Threatens Account of Reporting It to the IRS After Mistakenly Sending It $20 Million

(Photo : Image from Unsplash Website) Compound Founder Threatens Account of Reporting It to the IRS After Mistakenly Sending It $20 MillionCompound’s founder is now threatening an account that mistakenly received $20. The founder will report the account to the IRS if it does not return the mistakenly received $20 million. The full story is that Compound’s founder is now begging users to return around $90 million or about 280,000 COMP that was mistakenly sent out.

Mistakenly Sent Money

According to Mashable, the founder is now taking things a step further by threatening users who will not return the money. Compound, as well as other DeFi protocols, work as certain blockchain-based banks. These allow users to borrow money and also take loans.

The platform then rewards its lenders with their native COMP token. The service just recently released an upgrade, and it was noted that things started to go downhill from there. Robert Leshner, the founder of Compound, tweeted out that the new Comptroller contract contains some sort of bug which gave some users way too much COMP.

Around $90 Million Mistakenly Sent

The supposed “far too much COMP” was reportedly overpaid to Compound’s own users, amounts to about $90 million. The mistakenly sent $20 million appears to have been sent to just one Compound user that tweeted out a screenshot of having over 70 million COMP on their account.

Another user actually appears to have received around $29 million. A certain Bitcoin developer explained to CNBC that due to how blockchain works, there’s actually no way for Compound to get its money back.

Compound IRS Report Coming

Leshner also tweeted out that those that return the money will reportedly be able to keep 10%. Leshner notes that Compound will report the income directly to the IRS to be taxed. He now warns users that they will reportedly be doxxed, which means their personal information will be made public.

Compound still has to report their own earnings and pay taxes on them. The article by Mashable notes that the IRS does not need to know about the said 10% a user will keep if they choose to return the rest. Another way to get free coins is through airdrops.


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