As a seasoned crypto investor with years of experience in this space, I can’t help but feel a sense of unease upon hearing the latest reports about Sorta Finance. The red flags raised by ZachXBT are not new or isolated incidents; they build on a long history of suspicious activity, including over $25 million in stolen funds from various projects such as Magnate, Kokomo, Lendora, Solfire, Crolend, and HashDAO.
According to reports from ZachXBT, there are serious concerns that Sorta Finance may be an exit scam on the Arbitrum network. These worries arise due to their past record of alleged fraudulent actions, which involves the theft of over $25 million in funds from projects such as Magnate, Kokomo, Lendora, Solfire, Crolend, and HashDAO.
The suspect behavior initiates when Sorta’s deployer obtains fresh financing, and the initial address engaging with Sorta’s contracts is funded anew with 100 Ether drawn from Tornado Cash.
In the record of past transactions, you’ll find two notable ones. The first one was an initial investment in Sorta using the Tornado wallet address 0x4a…35b. The second transaction involved a withdrawal from Sorta utilizing the Tornado wallet address 0xdc…909.
Sorta Finance operates by transferring Compound V2 copies to different EVM chains. Their usual method is to amass substantial Total Value Locked (TVL), then halt transactions for withdrawals and borrowing, executing a rug pull that drains funds, often leaving users in a predicament.
Scammers frequently use subpar audit companies for contract checks and create deceitful Know Your Customer (KYC) procedures, all while paying low-ranking influencers to promote their protocols through misleading social media content.
As a responsible crypto investor, I would advise caution when dealing with the Sorta deployer addresses (0x30…e41 and 0x37…d88). It’s essential for the community to remain vigilant and avoid any interaction with this protocol to protect our assets from potential theft.
Expert: ZachXBT questioned the significance of a scam with just $76,000 in total value locked (TVL) at present, given that such schemes have previously inflated their worth to millions. To prevent further harm, ZachXBT emphasized the importance of recognizing and dealing with these issues promptly. For clarification, there have been successful scams carried out on Blast, Base, and Arbitrum by this group this year.
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2024-07-25 16:54