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MEVbots Backdoor Drains Users’ Ethereum Funds Via Arbitrage Trading Bot
An investigation of MEVbots’ contract revealed a backdoor that allows the creators to drain Ether from its users' wallets.
Andrew
12:14 24th Sep, 2022
Frauds

MEV gain, an Ethereum (ETH) arbitrage trading bot built by MEVbots, which claims to provide stress-free passive income, has been actively draining its users’ funds via a fund-stealing backdoor.

Arbitrage bots are programs that automate trading for profits based on historical market information. An investigation of MEVbots’ contract revealed a backdoor that allows the creators to drain Ether from its users' wallets.

The scam was first pointed out by Crypto Twitter’s @monkwithchaos and later confirmed by blockchain investigator Peckshield.

Suspect account @chemzyeth promoting MEV services. Source: Google cache
@chemzyeth's Twitter account deleted after community callout. Source: Twitter

Peckshield further confirmed that at least six users had fallen victim to the backdoor attack.

Transaction of stolen funds from MEV gain's fund-stealing backdoor. Source: Peckshield

Carrying forward the success of scalability-focused layer-2 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.”

One of the use cases for layer-3 protocols, according to Buterin, is “customized functionality” — aimed at privacy-based applications which would utilize zk proofs to submit privacy-preserving transactions to layer 2.

Source



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