$25M Siphoned in Ethereum MEV Exploit: PeckShieldAlert

  • The bot-exploiting transactions replaced the victim transactions.
  • The recent exploit resulted in a total loss of around $25 million.

A recent incident involving sandwich-focused MEV bots on the Ethereum network has raised concerns about the security of decentralized exchanges (DEXs), according to PeckShield, a blockchain security analytics firm. The bundles, which were supposed to execute reverse swaps and take profits, were found to be broken, with the backrun transactions being reverted. This has led to questions about who is to blame for the exploit.

According to an analysis, the bot-exploiting transactions replaced the victim transactions, which already included the reverse swap to take profits. This has reportedly raised concerns about the potential risks associated with using MEV bots on DEXs, and the need for more robust security measures to prevent such incidents.

Further analysis of the recent exploit has revealed that the stolen funds are primarily located in three addresses: 0x3c98…8eb ($20M), 0x5b04…5b6 ($2.3M), and 0x27bf…f69 (~$3M). Interestingly, it has also been discovered that Kucoin, a centralized cryptocurrency exchange, initially funded eight addresses involved in the exploit.

According to Punk #3155, a Twitter user and Smart Contract developer, the recent exploit resulted in a total loss of around $25 million. This has allegedly raised suspicions of a rogue validator being involved, as Aztec funded the proposer of the exploit. According to him, the incident could be a significant turning point for the entire MEV ecosystem, and it appears to be a well-planned attack.

Further analysis of the exploit has revealed that the perpetrator became a validator only 18 days ago and prepared the tokens 16 days ago. As the developer suggested, many details need to be examined to determine the full extent of the incident.

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