Kokomo, a crypto lending platform that had been gaining popularity in the market, has allegedly pulled off an exit scam worth $4 million. The developers of Kokomo reportedly used Wrapped Bitcoin to make off with the funds and have since deleted all social media presence.
The news of this exit scam has sent shockwaves through the cryptocurrency community, as investors who had trusted Kokomo are now left high and dry. According to reports, since news of the alleged scam broke out, Kokomo tokens have fallen by a staggering 95%.
Wrapped Bitcoin is an ERC-20 token pegged to Bitcoin and is often used by DeFi protocols as collateral for loans. In this case, it seems that the developers of Kokomo used these tokens to take out loans on other platforms before making their exit.
One investor who spoke anonymously said they had invested heavily in Kokomo and were devastated when they learned about what had transpired. "I thought I was investing in a legitimate platform," they said. "Now I'm left with nothing."
This incident serves as yet another reminder of the risks associated with investing in cryptocurrencies and decentralized finance platforms. While these technologies offer exciting opportunities for innovation and financial freedom, there are also bad actors looking to take advantage.
At present, it remains unclear what actions will be taken against those responsible for this alleged exit scam or if any legal recourse can be pursued by affected investors.
As always, it is important for individuals interested in investing in cryptocurrencies or utilizing DeFi platforms to conduct thorough research beforehand and exercise caution when dealing with unknown entities or projects promising unrealistically high returns.
Stay tuned for further updates on this developing story as more information becomes available.