EddieJayonCrypto
16 May 24
The U.S. Department of Justice has charged two brothers with orchestrating an attack on Ethereum trading bots. The charges include conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. The brothers targeted bots using a process called maximal extractable value (MEV)...
The U.S. Department of Justice has charged two brothers with orchestrating an attack on Ethereum trading bots, alleging conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. The brothers exploited maximal extractable value (MEV) to carry out a highly lucrative and premeditated plot, violating MEV rules and using a flaw in MEV boost to gain an unfair advantage. The DOJ's case focuses on the brothers' signing of false transactions and unfair gain of information, with technical sophistication noted and debates arising on the fairness of exploiting MEV bots. The scheme resulted in approximately $25 million in profits from at least eight transactions. The brothers used a flaw in MEV boost to gain an unequal advantage, violated MEV rules, and set up shell companies to launder funds. The attack was quickly patched by the Flashbots team, with no lasting implications. Some in the crypto community denounce the DOJ's complaint, arguing that exploiting MEV bots is fair game, while others advocate minimizing MEV on Ethereum. Despite the controversy, the exploitation of MEV remains a highly debated and complex issue within the cryptocurrency space.
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