MEV Gain Drains Users’ ETH Funds Through Fund-Stealing Backdoor

Key Takeaways;

  • Around six users had fallen victim to the backdoor attack.
  • Reportedly, MEVbots’ contract had a backdoor that allowed the creators to drain Ether from its users’ wallets.

MEV gain, an Ethereum arbitrage trading bot by MEVbots is reportedly draining users’ funds using a fund-stealing backdoor. An arbitrage bot is supposed to check pricing for your desired crypto token on different exchanges and perform trading. These bots also utilize historical data to plan trading strategies.

An investigation by the crypto community in MEVbots’ contract revealed a backdoor that allows the creators to drain Ether from its users’ wallets. Reportedly, it was luring investors by claiming to provide stress-free passive income.

The blockchain and analytics security firm Peckshield has confirmed the exploit. 

Our analysis confirms what the @mevbots promotes for the so-called “MEV gain” has a fund-stealing backdoor. Do *NOT* fall prey to it”, Peckshield’s tweet reads. The firm also confirmed that around six users had fallen victim to the backdoor attack.

The scam was first pointed out by crypto user @monkwithchaos.Following widespread discussions on the scam, the primary promoter of MEV, Twitter user @chemzyeth deactivated their account.

Mev Gain Drains Users’ Eth Funds Through Fund-Stealing Backdoor

Recently, Vitalik Buterin, co-founder of Ethereum, has shared his vision for Ethereum layer 3s.

Buterin stated that a third layer on the blockchain would be of purpose if it is only able to provide a different function to layer 2s, which have been used to increase scaling through the utilization of Zero-Knowledge Rollup Technology.

“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,” Buterin said.

Saniya Raahath
Saniya Raahath

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