by There has been an investigation carried out on the contract protocol of MEVbots and the report showed that there is a back channel that lets the platform’s creators drain out Ethereum from users’ accounts.
Uncovering the Plot
MEV is an arbitrage trading bot for Ethereum which was built by MEVbots. The trading bot claims to be one that provides an easy way to make passive income for users. It has now been discovered that it actively deducts funds from its users through a backdoor built into the system.
The idea behind arbitrage bots is that they are built programs for carrying out automated crypto trades for profits and they are built on the market’s information history. An investigation that looked into MEVbot was able to uncover the anomaly in the contract which lets the builders exploit a backdoor to steal Ethereum from their users.
The scam going on with MEVbot was first made public on Twitter by a user @monkwithchaos which was later corroborated by an investigator of blockchain activities, Peckshield. After the revelation came to the limelight, the most vocal MEV promoter on Twitter, @chemzyeth, vanished from the entire internet space.
Working Toward Layer 3
Peckshield was later to confirm that a minimum of six users were reported to have been victims of the scam. But considering the fact that the MEV contract remains active, there are up to 13,000 unsuspecting MEVbots Twitter followers who are still at risk.
While moving on from the successful completion of the Ethereum Merge and advancing the success of the layer 2 scalabilities, Ethereum’s co-founder, Vitalik Buterin, has announced what his vision for the next layer 3 solution is. Buterin said that a scaling structure of three layers where the stack performs the same kind of scaling operation on each other is not really effective.
Buterin went on to explain that rollups that stack on each other where two layers of it use the exert same technology also will not work. Therefore, according to him, part of the use of a layer 3 network will be to customize functionality. It is said to be aimed toward applications that are based on privacy and would use zk as proof in the process of submitting transactions that preserve privacy to layer 2.
