Tether Takes Action: Blacklists Validator Address Linked to $25 Million MEV Bot Drain – Here's What Happened
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Tether, the company behind the world's largest stablecoin, has blacklisted a validator address responsible for draining $25 million from Maximal Extractable Value (MEV) bots.
The validator exploited a bug in the MEV-boost relay to bypass MEV bots by attempting to execute a sandwich trade, which processes an order immediately before another trade and then right after it.
Essentially, this process simultaneously front-runs and back-runs an originating transaction, on the condition that its verification status is still pending.
The validator, in this case, back-run the MEV’s transaction, leading to losses of nearly $25 million in various digital assets, making it the largest MEV exploit to date.
A validator is responsible for processing transactions and creating new blocks on the blockchain.
Blockchain explorer Etherscan has already flagged the address involved.
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