QUADRIGA INITIATIVE
CRYPTO WATCHDOG & FRAUD RECOVERY PLATFORM
A COMMUNITY-BASED, NOT-FOR-PROFIT
UNKNOWN
JULY 2024
GLOBAL
SORTA FINANCE
DESCRIPTION OF EVENTS
"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."
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.
@zachxbt Twitter (Aug 21)
Beware of the Sorta Finance Scam: $25M Heist and Counting! | by Solidity Academy | Jul, 2024 | Medium (Aug 21)
https://www.binance.com/en/square/post/2024-07-25-sorta-finance-alleged-exit-scam-warning-issued-11273436216385 (Aug 21)
Sorta Finance (Aug 21)
Sorta Finance Likely Planning Exit Scam on Arbitrum, Warns ZachXBT: Guest Post by CoinPedia News | CoinMarketCap (Aug 21)
https://defillama.com/protocol/sorta-finance (Aug 21)
https://dappradar.com/dapp/sorta-finance (Aug 21)
- YouTube (Aug 21)
@Sorta_Finance Twitter (Aug 21)
audits_public/Sorta Finance.pdf at main · DeHacker-io/audits_public · GitHub (Aug 21)
@Alyhyanna8 Twitter (Aug 21)
@karumi289 Twitter (Aug 21)
@EliteRetrieval Twitter (Aug 21)
CoinStats - Sorta Finance Likely Planning Exit Scam on Ar... (Aug 21)
ZachXBT Warns Users About Sorta Finance Possible Exit Scam (Aug 21)
Sorta Finance Likely Planning Exit Scam on Arbitrum, Warns ZachXBT (Aug 21)
