Investors are urged to steer clear of Sorta Finance on Arbitrum amid strong indications of an impending exit scam. The protocol recently deactivated its Sorta Finance X account, raising serious red flags about its legitimacy.
This scammer has a notorious history, previously stealing over $25 million through various scams, including Magnate, Kokomo, Lendora, Solfire, Crolend, and HashDAO. The current deployer address for Sorta Finance was newly funded, and the first address to interact with Sorta’s contracts received 100 ETH from Tornado Cash, a known anonymity tool often associated with illicit activities.
🚨#ChainAegisAlert #rugpull@Sorta_Finance is likely to exit scam on #Arbitrum, do not use the protocol. They just deactivated the Sorta Finance X account.
This scammer has previously stolen $25M+ with scams such as Magnate, Kokomo, Lendora, Solfire, Crolend, HashDAO, etc. https://t.co/wflAqLUbCE pic.twitter.com/E7vBdIjC1n
— ChainAegis (@ChainAegis) July 26, 2024
Sorta Finance operates by forking Compound V2 on various EVM chains. Once the Total Value Locked (TVL) in the protocol reaches a significant amount, the scam operators typically pause withdrawals and borrowing, subsequently rugging all users. This method has been used effectively in their previous scams.
To add a veneer of legitimacy, they pay low-quality audit firms to audit their contracts and provide fake Know Your Customer (KYC) documentation. They also engage F-tier influencers to write long, persuasive posts promoting the protocol.
The early Sorta user funded from Tornado can be traced to address 0x4a7ea410a099127ccddb13c6b7695c771cce735b, which received 100 ETH from a Tornado withdrawal address, 0xdcf4829ee7467c298072bb855d59b324e199d5145cedb5bd5683c2e53a53d909. The Sorta deployer addresses are 0x304eb4af188a27906267e4650ff5e12c9dd19e41 and 0x37b1b9f6aeebc4edb6e4c9eb4a9d88797ddaad88.
Community Alert: @Sorta_Finance is likely to exit scam on Arbitrum in the future so do not use the protocol.
This scammer has previously stolen $25M+ with scams such as Magnate, Kokomo, Lendora, Solfire, Crolend, HashDAO, etc
The deployer was newly funded and the first address… pic.twitter.com/JsHGawtQyX
— ZachXBT (@zachxbt) July 25, 2024
Given the evidence, it is highly likely that Sorta Finance is preparing to execute an exit scam similar to their previous fraudulent activities. Users are strongly advised not to engage with Sorta Finance and to withdraw any funds they might have in the protocol immediately to avoid potential losses. The crypto community must remain vigilant against such scams and report suspicious activities to prevent further exploitation.
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.