Kokomo Finance

On 26 March 2023, Kokomo Finance executed an exit scam on Optimism that resulted in the loss of roughly $4.5M and a >95% token price drop; the deployer upgraded the token implementation to a malicious contract (cBTC) and used an ice-phishing technique to obtain user approvals and drain soWBTC, which was then swapped to WBTC. The report notes centralization and upgradability of contracts as the primary root causes, provides on-chain addresses and asset tracing, and recommends vigilance and audits to mitigate similar DeFi risks.