The use of bots has an important place in the crypto money world. However, sometimes mistakes can happen. An error in the altcoin network resulted in substantial loss of funds. Here are the details.
Bot crash on altcoin network
One MEV Bot lost over $400,000 due to a misconfiguration. Accordingly, the bot sent the funds to a wrong Uniswap pool. The validators earned over 80 ETH from the bot’s transactions. A maximal extractable value (MEV) sniping bot failed a few hours ago. As a result, more than $400,000 was lost for users who sent funds to him. Blockchain analysis firm Arkham Intelligence made a statement on the subject. It has been reported that several users of an Alpha group have sent 160 ETH to the bot to block the issuance of Poo Finance tokens. These users want priority access to be included in the first block transaction. He paid 80 altcoins ETH for it. This means that they have committed 240 ETH worth $440,000 to steal their Poo Finance token.
But the bot did not work as intended. Sent 160 ETH to the wrong Uniswap V3 pool. Arkham said the bot sent these funds after detecting an ‘add liquidity’ transaction from the developer. The Poo Finance developer has added 40 ETH liquidity to the main pool. The bot purchase targeted a smaller pool with fewer token resources. Transactions are usually adjusted for transaction fees. Priority is given to those who pay higher wages. By accessing this transaction data, an MEV bot can make the highest profit by arbitraging or avoiding transactions. This means that the payment of 80 altcoin ETH resulted in the MEV bot purchasing 4 ETH worth of Poo Finance tokens.
What made the situation worse was that all 160 ETH went to the Uniswap router. Due to the functionality used for this token exchange, not much altcoin ETH was returned.
Other boating accidents
Another bot, 0x9dd, took the excess altcoin ETH on the Uniswap router. The bot paid about $800 worth of 0.43 ETH to claim the extra $196,000 on the router. Meanwhile, the original bot has over 6 billion POO tokens worth around 3 ETH after spending over $400,000. The biggest winners from these transactions were validators who were encouraged to prioritize them.
Meanwhile, an MEV bot named Jaredfromthesubway.eth made millions earlier in the year through sandwich attacks and arbitrage opportunities. As we have mentioned as Kriptokoin.com, sandwich attack occurs when the attacker gives a transaction order before and after a pending transaction. Thus, the actual operation is compressed. The bot spent over $1 million in gas fees to profit from trading several memecoins on April 19. Let’s see what other mistakes we will see in the altcoin world.
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