An Ethereum( ETH) arbitrage trading bot made by MEVbots, which claims to give stress-free passive income, has been diligently draining its users ’ funds via a fund-stealing backdoor.

Arbitrage bots are programs that use historical market data to automate trading for profit. An examination of MEVbots' contract revealed a loophole that allows the creators to drain Ether from the wallets of its users.

The scam was discovered by Crypto Twitter user @monkwithchaos and confirmed by blockchain investigator Peckshield.

Following the disclosure, MEV's primary promoter, @chemzyeth, suddenly disappeared from the internet.

Source: Twitter

Peckshield also confirmed that the backdoor attack had affected at least six users.

However, because the contract is still in effect, at least 13,000 unwary MEVbots Twitter followers are still at risk of losing their funds.

Continuing the success of layer-2 scalability solutions, Ethereum co-founder Vitalik Buterin shared his vision for layer-3 protocols. He stated,"

“A three-layer scaling architecture that consists of stacking the same scaling scheme on top of itself generally does not work well. Rollups on top of rollups, where the two layers of rollups use the same technology, certainly do not.”

According to Buterin, one of the use cases for layer-3 protocols is "customized functionality," which is aimed at privacy-based applications that use zk proofs to submit privacy-preserving transactions to layer 2.

Sep 24, 2022
Crypto News

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