Tether (USDT) has blacklisted the wallet address of the Ethereum validator exploiting MEV bots.
In the MEV bot exploit that took place last month, it was stated that an Ethereum validator was in the lead role of approximately $25 million in exploits. The Ethereum validator that committed the exploit reversed the MEV bots that were trying to execute a sandwich transaction. With this move, it took advantage of a fault in the MEV-boost relay.
Finally, Tether announced that it has blacklisted the wallet address of the abuser in question. Tether’s approach has drawn criticism from the crypto community.
Tether Blocks MEV Abusers
The MEV abuser caused a loss of $25 million and was the lead role in the largest MEV exploit to date. Etherscan flagged the address of the Ethereum validator, warning that it was involved in the exploit.
A move to crypto wallets belonging to the abuser also came from Tether. USDT issuer Tether has blacklisted the crypto wallet address of the MEV abuser.
The blacklisting of the validating wallet address has received some backlash from the community for its censorship approach. Arthur, an official at Kraken, said that MEV bots also take advantage of traders and that the blacklisting is “nonsense”.
There have been intense reactions from the crypto community on the subject. Polygon co-founder Jaynti Kanani called Tether’s action a “bad precedent”. Also, Fastlane Labs co-founder Jordan Hagan commented that “the most worrying DeFi development of 2023”.
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