Sorta Finance: Blockchain Expert Raises Rug Pull Concerns

IconCryptoNewsTerminal Staff25 Jul, 2024

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Sorta Finance: Blockchain Expert Raises Rug Pull Concerns

Blockchain security expert ZachXBT has issued a warning to users of Sorta Finance, an Arbitrum-based lending platform. ZachXBT alleges that Sorta Finance is operated by the same individuals behind previous rug pulls, including CocoSwap, Magnet Finance, and Soldefi. These scams resulted in the theft of over $25 million. ZachXBT claims that the individuals behind Sorta Finance have recently raised new funds and that an address associated with the platform received 100 ETH through the crypto mixing protocol Tornado Cash. He believes that once the total value locked (TVL) on Sorta Finance reaches a certain threshold, the team behind the project will abscond with the funds and shut down the platform. ZachXBT had previously issued similar warnings about Leaper Finance, a Velas-based lending protocol that suffered an exit scam in April this year. Sorta Finance users are advised to withdraw their funds from the platform immediately.

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