Optimism-based lending protocol Kokomo Finance suspected of $4 Million "Exit Scam"

Kokomo Finance, an optimism-based lending protocol, has been accused of perpetrating a $4 million "exit scam" in which user funds were siphoned from the platform via a smart contract loophole. Blockchain security firm CertiK flagged the incident, stating that Kokomo Finance removed all social media accounts after the alleged rug pull. CertiK noted that the Kokomo Finance token lost 95% of its value in minutes. Kokomo Finance is a non-custodial lending protocol on Optimism, and the incident marks the largest that CertiK has detected on the platform.