Developers of DeFi project Kokomo Finance allegedly went into hiding by stealing $4 million in user funds. This was reported by CertiK specialists.
On 26 March 2023, Kokomo Finance conducted an exit scam and stole ~$4 million in user funds.
Details Below 👇 https://t.co/BEPwfahblz
— CertiKAlert (@CertiKAlert) March 26, 2023
Experts noted that the project team deleted accounts in all social networks.
The non-custodial lending protocol based on Optimism’s second layer solution went live on March 23rd.
🔥KOKOMO IS LIVE ON OPTIMISM🔥
Kokomo Finance, an open source and non-custodial lending protocol
✨Enter https://t.co/zOj8qSBZDX to lend, borrow and earn $KOKO here.
✨ A 14-days genesis mining starts now with a decent APR!
👉https://t.co/cnJLoYIB36#optimism $OP #kokomo pic.twitter.com/jMggC09EM6
— Optimism Space (✨🔴_🔴✨) (@Optimism_Space) March 23, 2023
According to DeFi Llamathe value of the funds blocked in the project reached approximately $ 2 million. More than 72% of the volume was accounted for by the “wrapped bitcoin” – WBTC.
According to CertiK, on March 26, Kokomo developers made changes to the smart contract that closed the reward and borrow functions. They then approved spending 7010 Sonne WBTC (so-WBTC). The team exchanged the assets for 141 “wrapped bitcoins” worth approximately $4 million.
The KOKO project token has collapsed to zero. At the peak, the price of the coin reached $0.05.
Pre-launch protocol audit spent company 0xGuard. The project has been tested in most aspects. Experts pointed to technical errors in the code and the possibility for the owner of KOKO to send 45% of the total supply of the token to an arbitrary address one-time.
In 2022, users of the crypto industry lost $63.9 billion as a result of 359 different incidents, including hacks and bankruptcies.
Source: Cryptocurrency
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