|

Solana kicks out validators extracting value from users through sandwich attacks

  • Solana Foundation announces removal of validators conducting sandwich attacks on its network.
  • Developers and users have opposing views on the issue, especially after the DoJ's charges against two brothers for similar attacks on Ethereum.
  • Solana's price declined briefly after the announcement but has quickly recovered.

Solana's (SOL) price slightly declined on Monday after its foundation expelled a group of validators from its delegation program on Sunday upon discovering their involvement in sandwich attacks against users.

Sandwich attack validators expelled from Solana delegation program

In a Discord post on Sunday, the Solana Foundation announced it had removed a group of validators from the Solana Foundation Delegation Program following their participation in sandwich attacks against Solana users. Solana Validator Relations Lead Tim Garcia made the announcement referencing an earlier May 7 post that warned against such attacks in the Solana ecosystem.

Read more: Solana meme coins GME, AMC suffer brief decline after GameStop releases earnings ahead of schedule

"Operators engaging in malicious activities such as participating in a private mempool to sandwich attack transactions or otherwise harming Solana users will not be tolerated by the delegation program. Anyone found engaging in such activity will be rejected from the program and any stake from the Foundation will be immediately and permanently removed," the referenced post stated.

Sandwich attacks are a form of front-running that involves an attacker choosing a blockchain pending transaction and placing two transactions — a buy and sell order — before and after it. The aim is to manipulate the underlying transacted asset's price so that the attacker can profit from the difference.

According to Garcia, the validators involved in the attack will no longer be able to receive SOL tokens from the Foundation to boost their participation in Solana's consensus. While the move prevents these validators from receiving delegated tokens from the Foundation, they can still independently participate in Solana's consensus.

Also read: Solana Price Forecast: On the verge of 18% rally

Solana's suspension of these validators follows the US Department of Justice (DoJ) charging two brothers, Anton and James Peraire-Bueno, for an alleged $25 million maximal extractable value (MEV) exploit. The brothers could face up to 20 years in prison if proven guilty.

Some developers have expressed disappointment at the move. In an X post on Sunday, Tornado Cash co-founder Roman Semenov stated, "So admins can just kick out validators they don't like in Solana?" Other developers even accused Solana of having a form of decentralization in its consensus process. However, users have the opposite view of the situation, as many have praised the Solana team for their quick response.

Solana's price saw a 2% decline after the announcement but has since recovered and is down by only 0.2% in the past 24 hours.

Author

Michael Ebiekutan

With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi

More from Michael Ebiekutan
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

AAVE slips below $186 as bearish signals outweigh the SEC investigation closure

Aave (AAVE) price continues its decline, trading below $186 at the time of writing on Wednesday after a rejection at the key resistance zone. Derivatives positioning and momentum indicators suggest that bearish forces still dominate in the near term.

Hyperliquid stabilizes amid plans to burn assistance fund

Hyperliquid (HYPE) stabilizes above $26 at press time on Wednesday after three straight days of losses. Hyperliquid Foundation has started a validator vote to reduce supply by burning the assistance fund, which holds over 37 million HYPE tokens.

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple extend correction as bearish momentum builds

Bitcoin, Ethereum, and Ripple remain under pressure as the broader market continues its corrective phase into midweek. The weak price action of these top three cryptocurrencies by market capitalization suggests a deeper correction.

Ethereum Price Forecast: Active addresses plunge to May levels amid resumption in US selling pressure

Ethereum (ETH) weekly active addresses have plunged sharply in December, declining from 440K to 324K, levels last visited in May. The decline in active addresses has also pushed down the number of transactions on the network to July lows.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.