Crypto News

Blacklists Validator Address Linked to $25 Million MEV Bot Drain – Here’s What Happened

Tether, the company behind the world’s largest stablecoin, has blacklisted a validator address responsible for draining $25 million from Miner Extractable Value (MEV) bots. The validator exploited a bug in the MEV-boost relay, leading to losses in various digital assets, making it the largest MEV exploit to date. MEV bots have been profitable by leveraging information about transactions, often using arbitrage to capitalize on price differences between exchanges. Blockchain explorer Etherscan has already flagged the address involved. To date, 27 Ethereum-based projects joined forces to launch MEV Blocker, aiming to minimize the value extracted from traders by MEV bots. However, Tether’s decision to blacklist the address has drawn criticism from the crypto community, with some arguing that it sets a bad precedent for regulatory and policy-related implications. This raises concerns about the potential abuse of power by centralized entities, such as Tether, and the implications this might have on DeFi. Meanwhile, some noted that Tether’s decision to blacklist the exploiter could be seen as a necessary security measure aimed at preventing bad actors from profiting off exploits and vulnerabilities in the DeFi ecosystem.

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