Cryptocurrency analyst warns about a suspicious protocol on the Arbitrum network – Sorta Finance. Is it another scam?

ZachXBT Warns Against Suspicious Sorta Finance Protocol on Arbitrum Network

ZachXBT, a well-known cryptocurrency market analyst, has conducted a study on fraud in blockchains, revealing suspicious practices of Sorta Finance on the Arbitrum network. Despite Sorta Finance’s increasing popularity, doubts have been raised regarding its integrity and authenticity of operations.

Suspicions of Fraud and Connections to Criminal Group

ZachXBT suspects Sorta Finance of fraud and affiliation with a criminal group that engages in stealing funds across various blockchains. This analysis is based on similarities in signatures between Sorta Finance and previous frauds such as Magnate Finance, Solfire, and HashDAO.

Copying Compound Loan Agreement Contracts

The practice of copying smart contracts for Compound loan agreements on Ethereum Virtual Machine-compatible blockchains has become common among suspicious financial platforms. The creators of these fraudulent platforms gained recognition on EVM chains, increasing the locked value through the use of questionable auditing firms and paying low-ranking cryptocurrency influencers for promotion.

Sorta Finance – Small Locked Funds and Large Profits

Despite Sorta Finance having less than $100,000 in Total Value Locked (TVL) as of July 25, protocols similar to Sorta Finance, seemingly planned by the same individual, have accumulated millions in deposits. According to ZachXBT, the creators of Sorta Finance and other frauds have earned over $25 million to date.

Growing Trend in Preventing Blockchain Crime

ZachXBT highlights a growing trend in cryptocurrencies to prevent blockchain crimes before they occur. Companies like Coinbase and initiatives like SEAL 911 are establishing digital analysis and information exchange centers (Information Sharing and Analysis Center, ISAC) to gather data on attacks, criminal activities, and operations in order to enhance the DeFi ecosystem.

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