Rug pull : Kokomo Finance disappears with $4M in Wrapped BTC

The founders of Kokomo Financea protocol from crypto loan launched this weekend, are evaporated in the nature with the funds of users.

On Sunday night, cybersecurity startup blockchain CertiK reported that Kokomo Finance had just carried out an exit scam and had stolen the equivalent of nearly 4 million dollars in cryptocurrencies to its users.

The decentralized finance project has simultaneously taken down its website and social media accounts. Launched Saturday, Kokomo Finance was presented as a non-depository protocol built on Optimism and dedicated to digital asset lending.

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According to CertiK, the team behind the protocol, deployed a cBTC malicious contract and managed to steal 141 WBTCor just over $3.9 million at the current price. Wrapped BTC is a wrapped version of Bitcoin (BTC) whose value follows that of the queen of cryptos.

Following the scam, the price of the protocol’s native token, KOKOhas fallen by more than 99% at $0.0006 from about $0.035 before the drama.

Rug pulls or exit scam are unfortunately still common practices in the crypto ecosystem today. Last month, Orion Finance, an Olympus DAO fork based on Arbitrum, also disappeared with the cash.

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