'Arsc' Bot Skims $30 Million from Solana Users via MEV Attacks
Summary:
The notorious maximal extractible value (MEV) sandwich bot, "arsc," has earned approx. $30 million from Solana users over the last two months using MEV attacks. These attacks involve purchasing a victim's token below market value and selling in the same block. Ben Coverston, founder of cryptocurrency firm MRGN Research, identified three major wallets used by the bot, collectively holding near $30 million. The existence of these MEV bots underlines the inherent risks in the digital finance world.
The notorious maximal extractible value (MEV) sandwich bot, known as "arsc," has reportedly skimmed approximately $30 million from Solana users within the past two months by executing MEV assaults. These attacks entail an attacker "sandwiching" a victim's transaction with their own, resulting in a manipulated price from which the attacker profits. They accomplish this by purchasing the victim's token at a lower than market value and subsequently selling it within the same block.
Ben Coverston, the initiator of the cryptocurrency firm MRGN Research, revealed in a 15th June post that this particular sandwich bot, identified as "arsc,” has expertly evaded attention while securing significant earnings from users of the Solana network.
One of the bot's largest wallet addresses "9973h…zyWp6," is suspected by Coverston to be utilized mainly for cold storage. "Judging by its activity, it is quite likely a securely locked cold wallet," explained Coverston. The Solana explorer site, SolanaFM, has indicated that this wallet contains slightly over $19 million, comprising $17 million in Solana (SOL) tokens and around $1.1 million in Circle's USD Coin (USDC) stablecoin. It also holds minor quantities of wrapped-SOL (wSOL), Cringe Coin (CRINGE), and Kabosu (KAB).
Another central wallet, address "Ai4zq…VXKKT," is significantly more involved in decentralized finance activities, according to Coverston. "This wallet is gradually converting SOL into USDC through JUP DCA and maintains substantial positions in Kamino and several LSTs," said Coverston. This wallet holds over $9.9 million in total funds, largely comprised of non-SOL tokens, as per SolanaFM.
Coverston identified a third wallet address, "BCbrp…vi58q," which he suspects is "arsc's" primary SOL bank used to perpetuate the sandwich attacks using diverse signers and tippers. Together, these three wallets contain a sum of $29.8 million, and it appears that "arsc's" operator is attempting to maintain a discrete presence. "The operator seems to be hiding their activities and profits diligently," said Coverston.
MEV sandwich bots frequently employ sophisticated algorithms to identify lucrative opportunities for exploitation. These bots are also widespread among the maximal extractible value bots on the Ethereum network.
Up until April 2023, an astonishing total of over $1.38 billion had been lost by Ethereum users to these bots, as per MEVBlocker.
Published At
6/17/2024 4:30:18 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.