Compound Foundation Accused of Misappropriating 8.42 Million DAI for Governance Manipulation

Compound community member ugurmersin alleged that the Compound Foundation violated Proposal 536 by using 8.42 million DAI from the DAO treasury for unauthorized purposes. On-chain records show the funds were converted into 344,780 COMP tokens and delegated to the Foundation's voting address to influence Proposals 580 and 582. This move reportedly facilitated the transfer of DAO funds to a committee controlled by the Foundation and secured the approval of a $52 million V4 plan.