According to TechFlow, on July 25, ZachXBT, an on-chain detective, warned that Sorta Finance may be about to implement an exit scam on Arbitrum, so please do not use the protocol. The scammer has previously defrauded more than $25 million through projects such as Magnate, Kokomo, Lendora, Solfire, Crolend, and HashDAO.

The deployer of Sorta and the first address to interact with its contract are funded with 100 ETH through Tornado Cash. They usually fork Compound V2 on various EVM chains, suspend withdrawals/borrowing after the total locked value (TVL) reaches a certain amount, and take away all user funds. The team also hired low-quality audit companies to audit contracts, provide fake KYC, and pay low-level influencers to write long articles.

Currently, Sorta’s TVL is only $76,000, but its scam projects’ TVLs have previously reached millions of dollars. Early prevention is needed to reduce the number of victims.