Sorta Finance has raised significant red flags as a potential exit scam on the Arbitrum network as per the reports from ZachXBT. This warning comes amidst their history of fraudulent activities, which includes over $25 million in stolen funds as Magnate, Kokomo, Lendora, Solfire, Crolend, and HashDAO.
The suspicious activity begins with the deployer of Sorta receiving new funding, with the first address to interact with Sorta’s contracts newly funded with 100 ETH sourced from Tornado Cash.
This transaction history includes Sorta’s initial funding from a Tornado address (0x4a…35b) and a Tornado withdrawal transaction (0xdc…909).
Sorta Finance’s operations involve forking Compound V2 across various EVM chains. Their modus operandi typically involves accumulating a significant Total Value Locked (TVL), halting withdrawals, and borrowing to execute a rug pull, leaving users stranded.
The scammers often employ low-quality audit firms for contract verification and fake KYC processes, while paying F-tier influencers to endorse their protocols to mislead readers with promoted posts.
The Sorta deployer addresses to be cautious of are (0x30…e41) and (0x37…d88). The community must stay vigilant and avoid engaging with this protocol to safeguard their assets from potential theft.
ZachXBT referring to other scams stated, with only $76K in TVL right now, why does it matter? Historically, they have managed to inflate these scam forks to millions in TVL. ZachXBT also mentioned that they would rather identify and address these issues early on to prevent more people from getting burned. For context, they have already pulled off scams this year on Blast, Base, and Arbitrum.
Also Read: MonoSwap Hack: Users Advised to Stop Staking and Withdraw Funds
