Kokomo Finance, a non-custodial lending protocol, allegedly stole $4 million from its customers over the weekend.

In an alert on Sunday, blockchain safety firm CertiK notified customers of Kokomo Finance’s exit rip-off which took assign most tasty two days after the mission became as soon as first launched on Layer 2 blockchainsOptimism.

An exit rip-off refers to a scenario the assign the mission’s creators abscond with their customers’ funds, most steadily after they enjoy got amassed a indispensable sum. On this case, Kokomo Finance appears to enjoy made off with $4 million price of crypto deployed onto the platform by customers in the previous couple of days.

In accordance to CertiK, the deployer of the protocol’s native token KOKO attacked the orderly contract of cBTC, a wrapped Bitcoin token to cease the borrow feature and alter the reward bustle. After it became as soon as became into a malicious contract, the deployer transferred 7000 “sonne WBTC” tokens to an Ethereum pockets deal with and transformed them to 141 WBTC price $4 million.

On the time of writing, all signs of Kokomo Finance’s online presence appear to were entirely wiped. The mission’s social media pages, including Twitter, and its official online page online were deleted.

The mission became as soon as audited by orderly contract auditor 0xGuard last week the assign one “excessive-severity scenario” became as soon as raised by the group – the skill to mint forty five% of the maximum provide of tokens to an arbitrary deal with.

Despite being operational for this sort of short time frame, data from DeFiLlama reveals that the mission fleet rose up the ranks by methodology of total value locked, which became as soon as barely over $2 million at press time.