#BotOrNot
Crypto Trader Loses 98% of Funds to MEV Bot in Sandwich Attack
A cryptocurrency trader lost nearly 98% of a $220,764 stablecoin transaction to a Maximum Extractable Value (MEV) bot in a sandwich attack on March 12. The attack occurred during a trade between USD Coin (USDC) and Tether (USDT) on Uniswap v3. The MEV bot front-ran the transaction, raking in over $215,500—with $200,000 tipped to an Ethereum block builder and $8,000 pocketed by the attacker.
Speculation suggests the trader may have suffered multiple sandwich attacks across Aave and Uniswap, leading some to question whether the transactions were linked to money laundering. In response to concerns, Uniswap’s CEO defended the platform’s protections against such attacks.
This incident underscores the risks of decentralized exchanges (DEXs) and the critical need for security measures in crypto trading.
