After restaurant-basketball, crypto-basketball – And to decentralized finance (DeFi) is groundbreaking innovationit is unfortunately also exploited by scammers. Indeed, crooks are rising from fake projectsthen leave with the cash register without leaving an address, this is called a « exit scam ». This time it’s the (obviously fake) team of Kokomo (KOKO) which seems to have defrauded its users.
Just arrived, the (fake) Kokomo Finance project suddenly disappears
Based on the Optimism (OP) blockchain, the teams of Kokomo presented their “project” as a service of lending (loans/returns). This service, Kokomo Financehad just been launched this Saturday, March 25, 2023.
But on the night of this Sunday to Monday, a first alert came from the cybersecurity company CertiKvia his account Twitter. The project token, the SIZEhas fatally fell more than 95 % while all social media accounts were deleted. The alert as possible exit scam was launched.
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Scammers exploited Wrapped Bitcoin to steal their users
Shortly after, in the early hours of this Monday, March 27, CertiK cybersecurity experts confirmed the exit scam and detailed procedure Kokomo scammers. To do their dirty trick, the latter exploited the Wrapped Bitcoin (WBTC) from Sonne. The principle of “wrapped” bitcoins is that bitcoins (BTC) are blocked on their original blockchain, to be transposed to another blockchain, here Optimism.
“1/ The issuer of the KOKO token, at address 0x41BE…, has deployed the cBTC attack contract. He then set the reward speed, paused the borrowing, and turned the execution contract into a malicious contract.
2/ Address 0x5a2d… approved cBTC contract to spend the 7010 rings WBTC.
3/ Since the execution contract has been transformed into the malicious cBTC contract, the attacker called the 0x804edaad procedure to transfer the WBTCs from Sonne to the address 0x5C8d…
4/ Eventually address 0x5C8d… traded 7010 WBTC Sonne for 141 WBTC (about $4 million) for their profit. »
Scams like Kokomo are unfortunately not not rare, because the enthusiasm of crypto-investors is great, and scammers know how to exploit it. He is very risky to rush to a new, freshly released DeFi protocol, especially if multiple audits du code of his smart contract were not carried out with due diligence. Besides, similar scams are developing to take advantage of the AI craze (artificial intelligences), then mistrust !
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