TechFlow reports that on July 25, on-chain investigator ZachXBT issued a warning stating that Sorta Finance may be preparing to execute an exit scam on Arbitrum, urging users not to use the protocol. The individual behind this project has previously carried out scams through projects such as Magnate, Kokomo, Lendora, Solfire, Crolend, and HashDAO, amassing over $25 million in stolen funds.
The deployer of Sorta and the first address to interact with its contract were both funded with 100 ETH via Tornado Cash. This group typically forks Compound V2 across various EVM chains, waits for the total value locked (TVL) to reach a significant amount, then disables withdrawals and borrowing functions to abscond with all user funds. The team also hires low-quality audit firms to conduct contract audits, provides fake KYC information, and pays low-tier influencers to publish promotional content.
Currently, Sorta's TVL stands at only $76,000. However, previous scams conducted by this group have reached TVLs of millions of dollars. Early caution is advised to prevent further victims.
