MEV gain, an Ethereum (ETH) arbitrage trading bot built by MEVbots, which claims to provide stress-free passive income, has been actively draining funds from its users through a fund-stealing backdoor.
Arbitrage bots are programs that automate trading for profit based on historical market information. An investigation of the MEVbots contract revealed a backdoor that allows creators to drain Ether from their users’ wallets.
Our analysis confirms what the @mevbots promotes for the so-called “MEV gain” has a fund-stealing backdoor. Do *NOT* fall prey to it https://t.co/z2eDqMF36b. and thanks @monkwithchaos for the heads-up https://t.co/dhSNGljoH0 pic.twitter.com/HWfCAwbae4
— PeckShield Inc. (@peckshield) September 23, 2022
The scam was first reported by @monkwithchaos of Crypto Twitter and later confirmed by blockchain researcher Peckshield.
Following the revelation, MEV’s main promoter @chemzyeth disappeared from the internet.
Peckshield further confirmed that at least six users had fallen victim to the backdoor attack.
However, considering that the contract is still active, at least 13,000 unsuspecting MEVbots followers on Twitter are still at risk of losing their funds.
Continuing the success of layer 2 solutions focused on scalability, Ethereum co-founder Vitalik Buterin shared his vision for layer 3 protocols. He stated:
“A three-tier scalability architecture that consists of stacking the same scalability scheme on top of itself generally doesn’t work well. Rollups on rollups, where the two layers of rollups use the same technology, certainly don’t.”
One of the use cases for layer 3 protocols, according to Buterin, is “custom functionality”, intended for privacy-based applications that would use zk proofs to send privacy-preserving transactions to layer 2.
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