So far Kokomo Finance lost $5.5M in total: crypto exit scam
Kokomo finance lost $5.5 million in total, because of a malicious developer(s) who exploited the implementation contract.
Kokomo finance is an averagely known Defi protocol in the crypto sector. As per reports, an unscrupulous developer misused the contracts Key, which is s essential in the execution of various DeFi functions.
In between 26 March to 1 April, suspicious developers or say exploiters drained $5.5 million worth of crypto assets.
Many experts claimed that it is only the backend team, as the official Twitter account of this project has been either deleted or deactivated, a Crypto security firm noted.
KOKO, the native token of the Kokomo finance, plunged badly, as the price graph is showing.
These types of incidents are showing that the crypto sector needs a highly reliable security audit organisation, which can approve the Defi projects to start crypto services as a reputed crypto service. Such incidents will only degrade the interest of crypto investors in the DeFi sector.
To maintain the trust level, crypto entrepreneurs & leaders needed to bring a better level of the security barrier to prohibit such types of bad actors.
FTX downfall & Defi adoption
In Nov 2022, the FTX crypto exchange collapsed badly. Allegedly FTX co-founder and some other leaders used the FTX customers’ fund for personal benefits. On 19 Nov 2022, FTX filed for bankruptcy under the chapter 11 code in a US bankruptcy court.
After the downfall of the FTX exchange, many crypto Investors started to shift their crypto trade activities on the Defi Platforms e.g Trust wallet, Atomic wallet, Uniswap exchange, MetaMask wallet, etc.
Read also: $1B lawsuit against Binance CEO & three other people
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