Create 2023-03-26-Kokomo-Finance.md

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Fact-Checking Results

• Statement: On 26 March 2023, Kokomo Finance, an open-source and non-custodial lending protocol, conducted an exit scam from their KOKO token deployed on Optimism. ✅

  • Source: https://ambcrypto.com/optimism-protocol-kokomo-finance-initiates-exit-scam-all-you-need-to-know/

• Statement: The exit scam led to the loss of approximately $4.5 million in user funds and more than a 95% drop in the token's price. ⚠️

  • Source: https://ambcrypto.com/optimism-protocol-kokomo-finance-initiates-exit-scam-all-you-need-to-know/
  • Explanation: The article mentions losses of approximately $4 million, but does not specify the exact amount of $4.5 million or the 95% drop in token price.

• Statement: On March 26, 2023, at 02:02 PM UTC, the implementation contract was upgraded to the malicious cBTC contract. ⚠️

  • Source: None
  • Explanation: The search results do not specify the exact time of 02:02 PM UTC when the malicious cBTC contract was deployed.

• Statement: On March 26, 2023, at 04:07 PM UTC, the team began exchanging soWBTC for BTC and subsequent distribution of stolen funds to various wallets. ⚠️

  • Source: None
  • Explanation: The search results do not mention the specific time of 04:07 PM UTC when the stolen funds began being exchanged and distributed.

• Statement: On August 1, 2023, Certik published a detailed analysis of the incident. ❌

  • Source: https://www.bitdegree.org/crypto/news/lending-protocol-kokomo-finance-vanishes-amid-4m-exit-scam-suspicions
  • Explanation: The search results indicate that Certik warned about the Kokomo Finance exit scam on March 26, 2023, not on August 1, 2023. The incident happened in March 2023.

• Statement: Losses amounted to 7010 soWBTC worth $4,500,000. ⚠️

  • Source: https://www.securities.io/kokomo-finance-exit-scam-and-swerve-finance-governance-attack-proof-of-rampant-defi-exploits-in-2023/
  • Explanation: The search results mention losses of 7,010 WBTC worth around $4 million, but do not specify the exact amount of $4.5 million.

Editor's Notes

• The date format in the "Timeline" section should be corrected to "Month day, year, time PM UTC:". For example, "March 26, 2023, 02:02 PM UTC:".
• The statement "On August 1, 2023, Certik published a detailed analysis of the incident." is incorrect based on the information provided. This should be removed or corrected.
• The losses are inconsistently reported as "$4.5 million" and "7010 soWBTC worth $4,500,000". This should be clarified and made consistent throughout the document.
• Consider adding more details to the "Attackers" section, such as any known information about the individuals or group behind Kokomo Finance.
• The "Early Indicators" section provides good general advice but could be strengthened by tying these points more directly to specific red flags that were present with Kokomo Finance prior to the exit scam.

Hugo SSG Formatting Check

• Does it match Hugo SSG formatting? ✅

Filename Check

• Correct Filename: 2023-03-26-Kokomo-Finance.md
• Your Filename: 2023-03-26-Kokomo-Finance.md ✅

Section Headers Check

• Allowed Headers: ## Summary, ## Attackers, ## Losses, ## Timeline, ## Security Failure Causes
• Your Headers: ## Summary, ## Attackers, ## Losses, ## Timeline, ## Early Indicators ⚠️
• Notes: The ## Early Indicators header is not in the allowed list. Consider renaming to ## Security Failure Causes or moving this content to a different section.

Metadata Headers Check

• Allowed Metadata Headers: date, target-entities, entity-types, attack-types, title, loss
• Your Metadata Headers: date, target-entities, entity-types, attack-types, title, loss ✅
• Notes:

  • The event occurred on March 26, 2023 based on the timeline in the text.
    2023-03-26
    The date metadata header matches the event date. ✅

  • The target entity is Kokomo Finance based on the summary.
    Kokomo Finance
    The target-entities metadata header matches the affected entity. ✅

  • The loss is stated as $4.5 million in the summary and timeline, though one statement says 7010 soWBTC worth $4,500,000.
    4500000
    The loss metadata header matches the predominant loss amount stated, though there is some inconsistency to address. ⚠️

  • The entity-types of "DeFi" and "Lending Platform" correspond to Kokomo Finance being a DeFi lending protocol. ✅

  • The attack-types of "Scam" and "Rug Pull" match the exit scam described in the text. ✅