The infamous maximal extractible value (MEV) sandwich bot known as “arsc” has pocketed around $30 million from Solana users in the last two months through MEV attacks.

An MEV sandwich attack occurs when an attacker “sandwiches” a victim’s transaction between their own two transactions in order to manipulate the price and profit from the user. They profit by buying the victim’s token at a price cheaper than market value and then sell it in the same block.

Ben Coverston, founder of cryptocurrency firm MRGN Research, said in a June 15 post on X that this particular sandwich bot, known as “arsc,” has “gone to great lengths” to avoid attention while raking in profits from Solana network users.

One of the bot’s largest wallet addresses is “9973h…zyWp6,” which Coverston believes is primarily being used for cold storage.

“It is quite inactive and, judging by its behavior, is almost certainly a locked-down, cold wallet,” Coverston said.

According to Solana explorer site SolanaFM, the wallet holds a little over $19 million in total funds, which includes $17 million worth of Solana (SOL $148) tokens and $1.1 million in Circle’s USD Coin (USDC $1.00) stablecoin.

It also holds small amounts of wrapped-SOL (wSOL), Cringe Coin (CRINGE) and Kabosu (KAB) are also held.

Another main wallet, with address “Ai4zq…VXKKT,” is far more active in decentralized finance activities, Coverston said. “It’s gradually converting SOL into USDC via JUP DCA and holds significant positions in Kamino and various LSTs.”

It holds over $9.9 million in total funds, which mostly comprise non-SOL tokens, according to SolanaFM.

Coverston identified a third wallet address “BCbrp…vi58q,” which he believes is arsc’s “main SOL bank” as it uses dozens of different signers and tippers to commit the sandwich attacks.

The three wallets hold a combined $29.8 million at current prices and Coveston believes the operator behind arsc seems to be trying to keep a low profile.

It seems they don't enjoy the attention, as they've recently gone to great lengths to hide their activities and profits.

MEV sandwich bots often use intelligent algorithms to identify and exploit these opportunities for profit. They are a common activity among maximal extractible value bots on Ethereum too.

Over $1.38 billion had been wiped from “well-meaning” Ethereum users on or before April 2023, according to MEVBlocker.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Recommended content


Recommended Content

Editors’ Picks

Ethereum ETF issuers file updated drafts, ETH staking still a possibility

Ethereum ETF issuers file updated drafts, ETH staking still a possibility

Ethereum (ETH) is down 1% on Wednesday as issuers began filing their final spot ETH ETF S-1 drafts with the Securities & Exchange Commission (SEC) in anticipation of a launch on July 23. Meanwhile, SEC commissioner Hester Peirce also said the regulator may reconsider its position on ETH staking within the ETFs.

More Ethereum News

Could Vitalik Buterin's argument affect support for pro-crypto political candidates?

Could Vitalik Buterin's argument affect support for pro-crypto political candidates?

Vitalik Buterin released a post arguing that politicians who claim to be crypto-friendly now may not support it in the future. Buterin highlighted many key factors that crypto represents beyond trading tokens. Intentions of pro-crypto politicians are becoming the subject of debate following Buterin's post.

More Cryptocurrencies News

Dogecoin provides opportunity for investors to ride potential 40% rally

Dogecoin provides opportunity for investors to ride potential 40% rally

DOGE has maintained price patterns similar to BTC, ETH, and SOL. The popularity of other newer meme coins may be drawing attention away from DOGE. DOGE on-chain metrics and technical indicators suggest a rally may be on the horizon.

More Dogecoin News

AI tokens rally following Grayscale's Decentralized AI Fund launch

AI tokens rally following Grayscale's Decentralized AI Fund launch

Grayscale launched its Decentralized AI Fund on Wednesday, allowing investors to gain exposure to the price of AI-focused cryptocurrencies. Following the announcement, the general market cap of AI tokens rose by nearly 4%.

More Cryptocurrencies News

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin (BTC) stabilized around the $57,000 mark this week, while the German Government persists in transferring Bitcoin to exchanges. Concurrently, US spot Bitcoin ETFs have recorded inflows.

Read full analysis

BTC

ETH

XRP