{"investigation":{"slug":"dragoma","entity_name":"Dragoma","trust_score":3,"severity_base":null,"score_modifier":0,"confidence":0.88,"status":"published","content_type":"investigation","summary":"Dragoma was a move-to-earn GameFi project built on the Polygon network whose native DMA token collapsed 99.8% within hours of its MEXC exchange listing on August 8, 2022, in what blockchain security firm PeckShield identified as a rug pull. Approximately $3.5 million in investor funds were allegedly drained by the development team and deposited into centralized exchanges. The project's website and all social media channels were subsequently deleted, and no known recovery or law enforcement action against the responsible parties has been publicly confirmed.","sections":[{"content":"Dragoma was a Web3 lifestyle and sports application built on the Polygon blockchain, incorporating GameFi and SocialFi elements. It was marketed as a move-to-earn experience similar to Solana-based STEPN, with a dual-token economic model. Players received dinosaur eggs that could be hatched into dragon NFTs, then engaged in activities including dragon training, pet combat, breeding, and exploration to earn the native DMA token. The DMA token contract address on Polygon is 0x16DFb898cf7029303c2376031392cb9baC450f94. The project's GitHub repository (github.com/dragonernft/drogma_contracts) contained contracts for the dragon NFT and the DMA platform token. The project was represented publicly by Texas-based founder Ken Graese, identified in a June 2022 press release.","heading":"Project Overview","sources":[{"url":"https://www.coindesk.com/business/2022/08/08/polygon-based-web3-game-dragoma-supporters-fall-victim-to-35m-rug-pull-peckshield","name":"coindesk.com","type":"other","credibility":3},{"url":"https://cryptoslate.com/over-1m-lost-to-polygon-based-dragoma-rug-pull/","name":"cryptoslate.com","type":"other","credibility":3},{"url":"https://polygonscan.com/token/0x16DFb898cf7029303c2376031392cb9baC450f94","name":"polygonscan.com","type":"other","credibility":3}],"severity":"medium"},{"content":"On August 8, 2022, less than 24 hours after the DMA token was listed on MEXC Global's Assessment Zone with a DMA/USDT trading pair, the token's price collapsed from a peak of approximately $1.78 to under $0.0023 — a decline of 99.8% — within roughly four hours. Blockchain security firm PeckShield identified the event as a rug pull, reporting that stolen funds amounting to approximately $420,000 USDT and 880,000 MATIC (with total losses estimated at $3.5 million) were moved from the project's contracts and deposited into centralized exchanges. Following the collapse, the Dragoma website became unresponsive and all associated social media accounts — including Twitter and Telegram — were deleted by the development team. MEXC suspended DMA/USDT trading citing abnormal on-chain transfers. Texas-based founder Ken Graese, who had publicly identified himself in project press releases, allegedly withdrew a portion of the stolen funds to KYC-requiring centralized exchanges, creating a documented identity trail for potential law enforcement follow-up. No public charges or arrests related to the Dragoma incident have been confirmed as of mid-2026.","heading":"Rug Pull and Exit Scam","sources":[{"url":"https://www.coindesk.com/business/2022/08/08/polygon-based-web3-game-dragoma-supporters-fall-victim-to-35m-rug-pull-peckshield","name":"coindesk.com","type":"other","credibility":3},{"url":"https://cryptoslate.com/over-1m-lost-to-polygon-based-dragoma-rug-pull/","name":"cryptoslate.com","type":"other","credibility":3},{"url":"https://cryptopotato.com/polygon-based-dragoma-rug-pulled-dma-dumps-99/","name":"cryptopotato.com","type":"other","credibility":3},{"url":"https://bitcoinist.com/attackers-wipe-out-3-5m-from-crypto-game-dragoma-through-rug-pull-technique/","name":"bitcoinist.com","type":"other","credibility":3},{"url":"https://www.banklesstimes.com/news/2022/08/08/polygons-dragoma-falls-victim-to-dollar35m-rug-pull/","name":"banklesstimes.com","type":"other","credibility":3}],"severity":"medium"},{"content":"At the time of the rug pull, over 5,700 wallet addresses held the DMA token according to Polygonscan data. The total loss estimate most widely cited in contemporaneous reporting is $3.5 million, sourced from PeckShield's on-chain analysis, though CryptoSlate reported a more conservative on-chain figure closer to $1 million based on directly traceable outflows of $420,000 USDT and 880,000 MATIC. Individual losses were reported from community members; at least one investor publicly disclosed losing $10,000. The MEXC exchange activated an investor protection fund in response to the incident and launched a compensation airdrop of \"Potion\" tokens to affected users, though the full scope and value of that compensation was not independently verified in available reporting.","heading":"Investor Impact","sources":[{"url":"https://cryptoslate.com/over-1m-lost-to-polygon-based-dragoma-rug-pull/","name":"cryptoslate.com","type":"other","credibility":3},{"url":"https://www.coindesk.com/business/2022/08/08/polygon-based-web3-game-dragoma-supporters-fall-victim-to-35m-rug-pull-peckshield","name":"coindesk.com","type":"other","credibility":3},{"url":"https://www.coincarp.com/events/dragoma-new-listing-on-mexc-global/","name":"coincarp.com","type":"other","credibility":3}],"severity":"medium"},{"content":"The DMA token was listed on MEXC Global's Assessment Zone on August 7, 2022 at 13:00 UTC, opening the DMA/USDT trading pair. MEXC ran a concurrent promotional deposit campaign awarding MX tokens to users who deposited DMA. The rug pull was executed less than one day after listing, generating significant trading volume during the brief window before the collapse. Upon detecting abnormal on-chain transfers, MEXC suspended DMA/USDT trading on August 8. MEXC subsequently activated its Investor Protection Fund and launched a \"Potion\" airdrop to compensate affected users, representing one of the more notable exchange-level responses to a rug pull incident during that period.","heading":"Exchange Listing and MEXC Response","sources":[{"url":"https://cryptoslate.com/over-1m-lost-to-polygon-based-dragoma-rug-pull/","name":"cryptoslate.com","type":"other","credibility":3},{"url":"https://www.coincarp.com/events/dragoma-new-listing-on-mexc-global/","name":"coincarp.com","type":"other","credibility":3}],"severity":"medium"},{"content":"The publicly identified founder of Dragoma is Ken Graese, described as Texas-based in a June 2022 press release distributed by the project. Multiple outlets reported that Graese allegedly withdrew a portion of the stolen funds to centralized exchanges with KYC requirements, which observers noted would create an identity record accessible to law enforcement. No arrest, indictment, or formal legal action specifically naming Ken Graese or any other Dragoma team member has been confirmed in publicly available records as of mid-2026. The development team used the GitHub handle \"dragonernft\" for the project's smart contract repository.","heading":"Responsible Parties","sources":[{"url":"https://www.coindesk.com/business/2022/08/08/polygon-based-web3-game-dragoma-supporters-fall-victim-to-35m-rug-pull-peckshield","name":"coindesk.com","type":"other","credibility":3},{"url":"https://bitcoinist.com/attackers-wipe-out-3-5m-from-crypto-game-dragoma-through-rug-pull-technique/","name":"bitcoinist.com","type":"other","credibility":3},{"url":"https://www.banklesstimes.com/news/2022/08/08/polygons-dragoma-falls-victim-to-dollar35m-rug-pull/","name":"banklesstimes.com","type":"other","credibility":3}],"severity":"medium"},{"content":"Blockchain security firm PeckShield was the primary on-chain analyst to publicly identify and report the Dragoma rug pull. PeckShield noted that following the token price collapse, the project's stolen funds appeared to have been deposited into centralized exchange wallets, consistent with a classic exit-scam fund-movement pattern. The DMA token contract (0x16DFb898cf7029303c2376031392cb9baC450f94) remains visible on Polygonscan and shows minimal activity post-collapse. No additional third-party on-chain forensic reports, such as from Chainalysis or Nansen, have been identified in publicly available sources. ZachXBT, the pseudonymous on-chain investigator who is noted as having flagged the entity, has not published a detailed dedicated investigation thread specifically about Dragoma in publicly indexed sources.","heading":"On-Chain Forensics","sources":[{"url":"https://cryptoslate.com/over-1m-lost-to-polygon-based-dragoma-rug-pull/","name":"cryptoslate.com","type":"other","credibility":3},{"url":"https://polygonscan.com/token/0x16DFb898cf7029303c2376031392cb9baC450f94","name":"polygonscan.com","type":"other","credibility":3},{"url":"https://www.coindesk.com/business/2022/08/08/polygon-based-web3-game-dragoma-supporters-fall-victim-to-35m-rug-pull-peckshield","name":"coindesk.com","type":"other","credibility":3}],"severity":"medium"},{"content":"As of mid-2026, the Dragoma project is effectively defunct. The official website is inaccessible, all social media channels remain deleted, and no development activity has been observed. The DMA token contract persists on the Polygon blockchain but trades at negligible value with minimal volume. No relaunch, successor project, or compensation mechanism beyond MEXC's initial protection fund response has been publicly announced. No criminal proceedings against the project's operators have been publicly confirmed.","heading":"Current Status","sources":[{"url":"https://cryptopotato.com/polygon-based-dragoma-rug-pulled-dma-dumps-99/","name":"cryptopotato.com","type":"other","credibility":3},{"url":"https://coinmarketcap.com/currencies/dragoma/","name":"coinmarketcap.com","type":"other","credibility":3}],"severity":"medium"}],"timeline":[{"date":"2022-06","event":"Dragoma project publicly announced with Texas-based Ken Graese identified as founder in a press release.","source":"","date_original":"2022-06-01"},{"date":"2022-08-06","event":"DMA token rallied over 160% ahead of the upcoming MEXC exchange listing, reaching a peak near $1.78.","source":""},{"date":"2022-08-07","event":"MEXC Global listed DMA in its Assessment Zone, opening the DMA/USDT trading pair at 13:00 UTC with a concurrent deposit promotion.","source":""},{"date":"2022-08-08","event":"DMA token collapsed 99.8% within approximately four hours. PeckShield identified the event as a rug pull, reporting that approximately $420,000 USDT and 880,000 MATIC (total estimated $3.5M) were drained from the project to centralized exchange wallets.","source":""},{"date":"2022-08-08","event":"MEXC Global suspended DMA/USDT trading citing abnormal on-chain transfers.","source":""},{"date":"2022-08-08","event":"Dragoma's website became unresponsive. Official Twitter and Telegram accounts were deleted by the development team.","source":""},{"date":"2022-08-08","event":"MEXC activated its Investor Protection Fund and announced a Potion token airdrop to compensate affected users.","source":""}],"sources_used":[{"url":"https://www.coindesk.com/business/2022/08/08/polygon-based-web3-game-dragoma-supporters-fall-victim-to-35m-rug-pull-peckshield","name":"coindesk.com","type":"other","archive_url":"http://web.archive.org/web/20260322055934/https://www.coindesk.com/business/2022/08/08/polygon-based-web3-game-dragoma-supporters-fall-victim-to-35m-rug-pull-peckshield","credibility":3,"archive_timestamp":"2026-03-22T05:59:34+00:00"},{"url":"https://cryptoslate.com/over-1m-lost-to-polygon-based-dragoma-rug-pull/","name":"cryptoslate.com","type":"other","archive_url":"https://web.archive.org/web/20260830042423/https://cryptoslate.com/over-1m-lost-to-polygon-based-dragoma-rug-pull/","credibility":3,"archive_timestamp":"2026-08-30T04:24:23+00:00"},{"url":"https://polygonscan.com/token/0x16DFb898cf7029303c2376031392cb9baC450f94","name":"polygonscan.com","type":"other","archive_url":null,"credibility":3,"archive_error":"error:no-request","archive_status":"unarchivable","archive_timestamp":null},{"url":"https://cryptopotato.com/polygon-based-dragoma-rug-pulled-dma-dumps-99/","name":"cryptopotato.com","type":"other","archive_url":"http://web.archive.org/web/20260829235336/https://cryptopotato.com/polygon-based-dragoma-rug-pulled-dma-dumps-99/","credibility":3,"archive_timestamp":"2026-08-29T23:53:36+00:00"},{"url":"https://bitcoinist.com/attackers-wipe-out-3-5m-from-crypto-game-dragoma-through-rug-pull-technique/","name":"bitcoinist.com","type":"other","archive_url":"http://web.archive.org/web/20250908153859/https://bitcoinist.com/attackers-wipe-out-3-5m-from-crypto-game-dragoma-through-rug-pull-technique/","credibility":3,"archive_timestamp":"2025-09-08T15:38:59+00:00"},{"url":"https://www.banklesstimes.com/news/2022/08/08/polygons-dragoma-falls-victim-to-dollar35m-rug-pull/","name":"banklesstimes.com","type":"other","archive_url":"https://web.archive.org/web/20260829143738/https://www.banklesstimes.com/news/2023/01/31/polygons-dragoma-falls-victim-to-dollar35m-rug-pull/","credibility":3,"archive_timestamp":"2026-08-29T14:37:38+00:00"},{"url":"https://www.coincarp.com/events/dragoma-new-listing-on-mexc-global/","name":"coincarp.com","type":"other","archive_url":"https://web.archive.org/web/20260830003931/https://www.coincarp.com/events/dragoma-new-listing-on-mexc-global/","credibility":3,"archive_timestamp":"2026-08-30T00:39:31+00:00"},{"url":"https://coinmarketcap.com/currencies/dragoma/","name":"coinmarketcap.com","type":"other","archive_url":"http://web.archive.org/web/20260418211457/https://coinmarketcap.com/currencies/dragoma/","credibility":3,"archive_timestamp":"2026-04-18T21:14:57+00:00"}],"source_tags":["defillama"],"addresses":[],"reviewed":false,"reviewed_by":null,"model_used":"claude-sonnet-4-6","created_at":"2026-05-04T02:54:48.466288+00:00","updated_at":"2026-08-30T05:14:12.817566+00:00"}}