Solana Sandwich Bot Nets $30M from MEV in 2 Months
In recent months, a notorious bot known as “arsc” has siphoned off approximately $30 million from Solana users by exploiting maximal extractible value (MEV) techniques, specifically through what’s termed as MEV sandwich attacks. These attacks involve the bot inserting its own transactions strategically around a victim’s transaction to manipulate the token price favorably. The bot profits by acquiring the victim’s tokens below market value and selling them within the same block for a higher price.
Ben Coverston, the founder of MRGN Research, highlighted in a June 15 post that the “arsc” bot has meticulously concealed its operations despite its significant gains from Solana network users. One of the bot’s major wallet addresses, labeled “9973h…zyWp6,” is believed to function as a cold storage wallet, where funds are kept secure and inactive. This wallet is reported to hold over $19 million, comprising mostly Solana (SOL) tokens valued around $17 million and $1.1 million in USD Coin (USDC) stablecoin. Smaller amounts of wrapped SOL (wSOL), Cringe Coin (CRINGE), and Kabosu (KAB) are also part of its holdings.
Besides this cold storage wallet, Coverston identified another more dynamic wallet address, “Ai4zq…VXKKT,” which is actively involved in decentralized finance (DeFi) transactions. This wallet is engaged in converting SOL to USDC through bullish methods and maintains substantial stakes in Kamino and various liquid staking tokens (LSTs), totaling around $9.9 million, predominantly non-SOL tokens.
A third wallet, “BCbrp…vi58q,” is considered the bot’s primary operational wallet for executing sandwich attacks. This wallet uses multiple signers and tippers to carry out its complex and covert transactions, acting as the main bank for the bot’s SOL operations. The combined holdings of these wallets stand at approximately $29.8 million at the current market valuations.
Coverston emphasizes that the operator behind the “arsc” bot appears to be quite wary of attracting undue attention. The lengths to which they have gone to keep their activities and earnings under the radar suggest a strong preference for maintaining a low profile. This type of activity is not unique to Solana; MEV sandwich bots are well-known in the Ethereum network as well.
The use of intelligent algorithms by MEV bots to identify and exploit profitable opportunities is a widespread practice. On the Ethereum network, maximal extractible value bots have been significantly detrimental to users, with reports indicating over $1.38 billion in losses incurred by “well-meaning” Ethereum users as of April 2023, according to MEVBlocker.
The crypto community remains on high alert regarding such activities, seeking ways to detect and mitigate the impact of MEV sandwich bots. Regulatory and community-led interventions are being contemplated to safeguard users from these sophisticated exploitations.
In essence, the activities of the “arsc” bot underscore the pressing need for enhanced security measures and vigilance within decentralized networks. The ongoing challenge is balancing the promise of decentralized finance with the vulnerabilities that such innovative spaces inherently present.
35 thoughts on “Solana Sandwich Bot Nets $30M from MEV in 2 Months”
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The scale of these exploits is mind-blowing. Big thanks to Ben Coverston for bringing this to our attention!
Those MEV sandwich attacks are devastating. Kudos to Ben Coverston for shedding light on this issue. 🌟📰
How is it possible that this bot’s actions have been so well-hidden? Security needs a serious upgrade.
The anonymity and clever tactics of the arsc bot are concerning. This is why people are skeptical of DeFi.
This really underscores the need for vigilance in the crypto world. Great insights by Coverston!
I’m losing faith in Solana and DeFi with every incident like this.
Stop glorifying these bots by calling them intelligent. They’re just sophisticated thieves!
Exploiting well-meaning users is despicable. Crypto needs to clean up its act.
A staggering $30 million! 🤑 This demonstrates the potential vulnerabilities within decentralized networks. Time for a stronger defense! 🛡
I can’t believe such a huge amount of money has been taken without detection. What kind of oversight is this?
Its fascinating yet scary to see how these bots can manipulate transactions. Thanks, Ben, for the detailed dive!
The crypto community must unite to tackle these exploits! Excellent breakdown by MRGN Research. 🌐💪
Can’t believe how much “arsc” has managed to siphon off! 💰 Time to beef up our defenses in DeFi. 🛡📈
This is just ridiculous! How are we supposed to trust crypto when things like this keep happening?
If they can steal $30 million without getting caught, what hope do regular users have? Time to reconsider my investments.
Incredible that the bot’s operations remained hidden despite such significant gains. Got to stay ahead of these threats!
It’s insane that bots on Ethereum have caused $1.38 billion in losses. DeFi feels like a high-risk casino at this point. 🎲
Incredible work by Coverston and his team. It’s crazy how well the “arsc” bot has evaded detection. 🤫🕵️♀️
It’s outrageous that a bot is able to siphon off $30 million. Where are the security measures?
Disgraceful to see so many people losing their hard-earned money to a bot exploiting flaws.
Eye-opening article! The crypto community must stay vigilant against such high-tech exploits. 🙌🔒
Hats off to MRGN Research for this detailed analysis. The crypto community needs more of this level of transparency.
The detailed look into the wallets and their operations is fascinating. Thanks for sharing this, Ben!
It’s amazing what these bots can do. We need to make sure our DeFi ecosystems are robust and secure. 💻🔍
This highlights the importance of community and regulatory interventions in the crypto space. 🚨🤝
These exploits make the whole crypto scene look bad.🤯 It’s high time for better security protocols. 🛡️
Coverston’s analysis is a wake-up call for all DeFi users. We need better protection strategies against these bots.
The “arsc” bot is a wake-up call. We need stronger defenses against these types of exploits. 🚨🛠️
Ben Coverstons insights are incredibly valuable. Its essential to understand how these bots operate to counteract them effectively.
Impressive analysis by MRGN Research. Coverston’s breakdown of the wallets is super detailed!
Wow, this is an eye-opener! 😲 The level of sophistication in these bot operations is mind-boggling. We really need better security in DeFi! 🔒
It’s clear we need continuous improvement in DeFi security measures. Kudos to Ben for his diligent research! 🔍🛡
How are they still functioning? Someone needs to crack down on these bots.
Ben Coverston’s insights are crucial for understanding these vulnerabilities. Knowledge is power! 💡🔐
These MEV sandwich attacks are just another way the little guys get screwed over. Not cool, arsc bot, not cool.