Jul 2024 - Sorta Finance Exit Scam Rug Pull - $Unknown (Global)
"Sorta Finance is an innovative cross-chain lending platform on the Arbitrum chain, aiming to provide users with secure, efficient and flexible lending services through advanced cross-chain technology and decentralized smart contracts. Our platform supports multiple blockchain assets, allowing users to seamlessly manage and utilize assets on different blockchains on one platform.
With Sorta Finance, we are committed to breaking down barriers between blockchains and achieving truly decentralized cross-chain lending, allowing every user to enjoy the convenience and opportunities brought by blockchain technology."
"According to on-chain detective ZachXBT, Sorta Finance is likely to conduct an exit scam on Arbitrum in the future, so do not use the protocol. This scammer has previously stolen over $25 million through scams such as Magnate, Kokomo, Lendora, Solfire, Crolend, and HashDAO."
"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 to interact with Sorta contracts was newly funded with 100 ETH from Tornado cash.
They operate by forking Compound V2 on various EVM chains.
Once the TVL reaches a sufficient amount they pause withdraw/borrowing and rug all of the users.
Typically they pay low quality audit firms to audit the contracts and provide fake KYC as well as paying F-tier influencer to write long posts."
Further Analysis
Sorta Finance launched as a fork of Compound V2 on Avalanche, and claimed to be an innovative cross-chain lending platform. The platform was able to obtain a smart contract audit, although the audit did warn of a centralization risk in the smart contract. A total value locked of $76k had been invested in the smart contract when ZachXBT was reported on the connections between this project and other previous rug pulls. The project's Twitter account and site both disappeared rather quickly following that. While there was value locked in the smart contract, it's unclear what portion of that belonged to victims as opposed to the Sorta Finance project team.
How Could This Have Been Prevented?
More Cryptocurrency Exchange Hacks/Scams/Frauds
SAT20 Labs Twitter Account Compromise > > < < TinTinLand Twitter Account Compromise
Sources/Further Reading
@zachxbt Twitter (Dec 31)
Beware of the Sorta Finance Scam: $25M Heist and Counting! | by Solidity Academy | Jul, 2024 | Medium (Dec 31)
https://www.binance.com/en/square/post/2024-07-25-sorta-finance-alleged-exit-scam-warning-issued-11273436216385 (Dec 31)
Sorta Finance (Dec 31)
Sorta Finance Likely Planning Exit Scam on Arbitrum, Warns ZachXBT: Guest Post by CoinPedia News | CoinMarketCap (Dec 31)
https://defillama.com/protocol/sorta-finance (Dec 31)
https://dappradar.com/dapp/sorta-finance (Dec 31)
- YouTube (Dec 31)
@Sorta_Finance Twitter (Dec 31)
audits_public/Sorta Finance.pdf at main · DeHacker-io/audits_public · GitHub (Dec 31)
@Alyhyanna8 Twitter (Dec 31)
@karumi289 Twitter (Dec 31)
@EliteRetrieval Twitter (Dec 31)
CoinStats - Sorta Finance Likely Planning Exit Scam on Ar... (Dec 31)
ZachXBT Warns Users About Sorta Finance Possible Exit Scam (Dec 31)
Sorta Finance Likely Planning Exit Scam on Arbitrum, Warns ZachXBT (Dec 31)
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