Using maximul extractible value (MEV) exploits to exploit Solana users, the infamous “arsc” sandwich bot amassed $30 million in only two months.
MEV sandwich attacks are the result of an attacker’s adept positioning of their own transactions around a victim’s transaction, thereby manipulating pricing and exploiting the situation.
They make a profit by acquiring the victim’s tokens at a price that is lower than the market value and selling them within the same block shortly thereafter.
Ben Coverston, the proprietor of MRGN Research, a cryptocurrency firm, disclosed the activities of the sandwich bot “arsc” on June 15. This bot has been secretly accumulating profits from unsuspecting Solana network users.
Coverston observed that the bot appears to be utilizing a cold storage strategy to protect its funds, as it is predominantly functioning from a wallet address designated “9973h…zyWp6.”
According to Coverston, it is inactive and, based on its conduct, is almost certainly a frigid, locked-down wallet.
Presently, this wallet contains more than $19 million in total funds, which includes approximately $17 million in Solana tokens and $1.1 million in Circle’s USD Coin stablecoin.
Furthermore, the wallet contains lesser quantities of Kabosu (KAB), Cringe Coin (CRINGE), and wrapped-SOL (wSOL).
According to Coverston, “Ai4zq…VXKKT” is an additional wallet of significance that is significantly more active in decentralized finance activities.
He made a passing reference to the wallet’s substantial holdings in Kamino and other LSTs, as well as the steady conversion of SOL into USDC via JUP DCA. The wallet in question contains a total of over $9.9 million in funds, the majority of which are non-SOL tokens.
Coverston also identified a third wallet address, “BCbrp…vi58q,” which he believes is the “primary SOL bank” of arsc.
In order to implement the sandwich assaults, the wallet utilizes a multitude of signers and tippers. Based on current prices, the operator of arsc is actively attempting to maintain a low profile, and collectively, these three purses contain a total of $29.8 million.
“It appears that they are not fond of the attention, as they have recently taken great measures to conceal their activities and profits,” Coverston continued.
MEV sandwich machines depend on sophisticated algorithms to identify and capitalize on these profit opportunities.
There have been instances of comparable activities among maximal extractible value algorithms on Ethereum.
By April 2023, MEVBlocker’s research indicates that Ethereum users who were well-intentioned had lost over $1.38 billion.
2Fast, a MEV arbitrage algorithm operator, generated $1.8 million in profit from a single transaction bundle earlier this year.
Under the supervision of 2Fast, the machine converted an initial investment of 703 SOL, which was approximately $70,000, into a staggering 19,035 SOL, which is equivalent to approximately $1.9 million. Figment, a renowned network validator, was kind enough to provide an additional 890 SOL.
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