- Validator steals $20M from MEV bot
- OtterSec exposes malicious block activity
- Stolen funds traced to three wallets
In a surprising turn of events, an Ethereum validator appears to have orchestrated an attack against a prominent maximal extractable value (MEV) bot, resulting in the loss of nearly $20 million. The incident has raised concerns about the security and integrity of the Ethereum network.
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Blockchain auditor OtterSec revealed that the attack was executed within a single Ethereum block. The validator seemingly manipulated a series of transactions to steal funds the MEV bot intended to acquire through front-running. Validators are entrusted with processing transactions and creating new blocks on the blockchain, making this incident particularly alarming.
MEV flashbots typically employ sandwich attacks to siphon value from users by sending transactions immediately before and after a victim’s transaction. This malicious tactic manipulates the asset’s underlying price, allowing the bot to pocket the price difference. In this case, however, the validator turned the tables on the MEV bot.
OtterSec’s investigation also uncovered that the attacker funded their wallet over two weeks prior using privacy layer Aztec Network, suggesting a premeditated plan. Blockchain analysis firm Peckshield tracked the stolen funds to three wallets, with eight associated addresses initially funded from Kucoin.
This unexpected breach of trust within the Ethereum ecosystem has left the community in shock and raised questions about the security measures in place to protect against such incidents. The revelation of this orchestrated attack by a validator underscores the need for increased vigilance and transparency in the blockchain space.
In other news, Michael Miller, the CEO of News Corp Australia, says that artificial intelligence (AI) application developers must pay for the news and material they utilize to better their products. Miller advised content producers in a scathing editorial published in The Australian on April 2 to avoid repeating past mistakes that left their sectors exposed to internet corporations benefitting off their work without proper recompense.
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