Tether blacklists validator address that drained MEV bots for $25M
The co-founder of Polygon and other decentralization proponents said the move sets a bad precedent. Tether, the issuer behind the leading stablecoin USDT has blacklisted an address that drained Maximal Extractable Value (MEV) bots for $25 million last week. The address in question exploited a bug in MEV-boost-relay to outsmart the MEV bots trying to execute a sandwich trade. Sandwiching occurs when one order is placed immediately before the trade and another immediately after it. In essence, the trader will front-run and back-run at the same time, sandwiching the original pending transaction in between. In this case, the rouge validator address swooped in to back-run the MEV’s transaction, leading to losses of nearly $25 million in various digital assets, making it the largest MEV exploit to date. Etherscan has already flagged the address with a warning of its involvement in the exploit. Rouge validator address. Source: Etherscan The USDT address held about $3 million in USDT at ...