COREPOUND

DESCRIPTION OF EVENTS

Corepound claimed to be a yield aggregator built on the Core blockchain, designed to optimize returns for cryptocurrency holders while minimizing risk exposure. The platform claimed to employ AI-driven strategies to automatically compound yields, allowing users to stake assets such as $CORE, $USDC, $USDT, $SolvBTC, and $WBTC in smart contract-powered vaults. These vaults were said to leverage a combination of lending protocols, validator staking, and BTCFi innovations to ensure long-term growth with sustainable rewards. Corepound also promised features like CoreChest, Points, and incentivized multipliers to enhance the user experience, providing a secure and transparent way for users to earn optimized yields while integrating Bitcoin liquidity into the DeFi ecosystem.

As a BTCFi yield aggregator, Corepound was built on Core Dao, a Bitcoin-powered and EVM-compatible chain. While Core Dao was still emerging, Corepound sought to establish itself as a key player within the ecosystem and expand the potential of Bitcoin-focused decentralized applications (Dapps). The platform claimed to offer users above-average annual percentage yields (APY) through vault staking, with high APYs backed by a robust financial system that combined smart contract technology and decision-making from experienced developers to ensure sustainability.

Users could earn on Corepound by staking their assets into vaults through a simple process. After connecting a wallet, users chose a vault, deposited their desired amount (while leaving funds for network fees), and the system automatically compounded rewards. Investment management was made easy, as users could harvest rewards, deposit more, or withdraw at any time, offering them flexibility to grow their assets.

Unfortunately, the team behind Corepound appears to have been planning the operation as a way to steal funds from users via an inevitable rug pull.

It appears that the team was anonymous and abused their position of trust to steal all assets of users who used their staking protocol.

According to SlowMist, the Corepound protocol reportedly conducted a rug pull and successfully made off with $400,000.

Data from Defi Llama shows a market valuation of $362k on the day prior to the rug pull event.

There was notice that the protocol appears to have gone offline. Some efforts appear to have been undertaken to trace the funds and report to authorities.

There is no word that the protocol team has been reached, nor of any specific recovery plan being underway.

The community has expressed some support and notified about the incidents. However, limited assistance appears to have been available for affected users.

There may be ongoing investigation and recovery efforts underway.

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Corepound, a yield aggregator built on the Core blockchain, claimed to optimize returns for cryptocurrency holders through AI-driven strategies, smart contract-powered vaults, and features like CoreChest and incentivized multipliers. Users were promised above-average APYs by staking assets such as $CORE, $USDC, and $WBTC. However, it was later revealed that the Corepound team, which remained anonymous, appears to have orchestrated a rug pull, stealing approximately $400,000 from users. Despite initial efforts to trace the funds, the protocol was reportedly taken offline, and no concrete recovery plans have been disclosed. The community expressed support, but there was limited assistance for those affected. Investigations into the incident are likely ongoing

Community Of Core - "We hear you. Core did not financially support Corepound and we're actively working to address the incident. We have talked with the Core team, we will be implementing stricter vetting protocols." - Twitter/X (Oct 8)
Attacker Address Profile - Debank (Oct 8)
Attacker Address - Blockchain.com (Oct 8)
Attacker Address - Etherscan (Oct 8)
Rolex_Core - "This time @corepoundxyz scammed Core players, this matter is no small deal. I hope the project team uses all their power to recover users' funds, try not to let the scammers withdraw, and hope that major exchanges learn from @Bybit_Official's lessons. I suggest @Coredao_Org @richrines refer to and draw from the experience of the SlowMist team @evilcos, while summarizing lessons learned to protect $CORE players' assets! Thank you!" - Twitter/X (Oct 8)
Core Ecosystem - "It has come to our attention that the Corepound project has gone offline. For security purposes, we strongly advise all users to avoid interacting with the application." - Twitter/X (Oct 8)
Potentially Part Of Theft - Etherscan (Oct 8)
 (Jan 16)
Corepound - Defi Llama (Oct 8)
Corepound - DappRadar (Oct 8)
Corepound - Forbes Digital Assets Profile (Oct 8)
DefiBNS - "Some people may find it confusing at first to know how to earn from a platform that collects and grows your crypto rewards.@corepoundxyz stands out because it’s made simple for anyone to use, even if you're new to DeFi." - Twitter/X (Oct 8)

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