According to CoinMeta, Compound Foundation is facing allegations of misappropriation due to a public accusation by a representative. The representative claims that the foundation attempted to control a spending plan and treasury of $52 million by converting 8.42 million DAI from reserves into COMP tokens. The allegations point out that the foundation's actions lacked transparency and incorrectly labeled the funds as "liquid" DAI. Ugurmersin states that these 8.42 million DAI were entrusted to the foundation in accordance with Proposal 536, and that the funds were intended solely for supporting the operation of the protocol. They are supposed to be owned entirely by DAO and are prohibited from being used for speculative trading. Ugurmersin cited blockchain records as evidence that these funds were used for unauthorized purposes. It is alleged that 8.42 million DAI were exchanged on exchanges for 344,780 COMP, and then returned and entrusted to the foundation's voting address. This allegation has drawn comparisons to the governance dispute with AAVE, which began in December 2025, when representatives pointed out that the proposed Cowswap integration would redirect the exchange fees from the AAVE DAO treasury.