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$4M ‘exit scam’ suspected as Kokomo Finance flies off radar, token plunges

Published 03/27/2023, 01:33 AM
Updated 03/27/2023, 03:20 AM

Optimism-based lending protocol Kokomo Finance has been suspected of a $4 million “exit scam” that has seen user funds plucked from the platform via a smart contract loophole.

Blockchain security firm CertiK alerted its followers to the “exit scam” in a March 26 tweet, noting that the Kokomo Finance (KOKO) token had plummeted 95% in value in a matter of minutes.

Kokomo Finance has either deactivated or deleted its Twitter account. Source: Twitter
Changes to the smart contract code of the KOKO began at about 9 am UTC on March 26. Source: Optimistic Etherscan
The price of Kokomo Finance token, KOKO fell over 97% at about 4:10pm UTC time on March 26. Source: CoinGecko
Kokomo did not pass all aspects of its smart contract audit, which was reviewed by 0xGuard in March. Source: GitHub

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