front-running

According to the WSJ, the court-appointed bankruptcy administrator of Terraform Labs has sued Jane Street in federal court in New York, accusing it of engaging in front-running trades using non-public insider information provided by Terra insiders during the collapse of Terra and profiting from it.The complaint states that shortly after Terraform Labs withdrew 150 million TerraUSD (UST) from the Curve liquidity pool, a wallet address associated with Jane Street also withdrew 85 million UST from the same pool, with a series of operations that illegally profited and accelerated the demise of Terraform Labs.

ChainCatcher news, 21Shares' crypto research strategist Matt Mena expects that crypto investors will exhibit "front-running" behavior before Trump's inauguration in January next year, similar to the situation before the U.S. presidential election in November. At that time, investors drove up crypto prices due to excitement over Trump's eventual victory, and this early activity could generate the momentum needed to break through the $100,000 mark.Analysis suggests that investors have high expectations for Trump's second term, as the incoming president has previously expressed public support for cryptocurrencies and hinted at the possibility of creating a national Bitcoin reserve, and is reportedly screening candidates for White House positions related to cryptocurrencies.

ChainCatcher news, Sun Yuchen stated on social media that recently, the Tron network received community feedback regarding front-running trades. After investigation, it was found that the Tron network does not have an MEV (Maximal Extractable Value) mechanism. Overall, Tron is significantly ahead of Ethereum and Solana in preventing bot front-running, with an interception rate of around 98%.Tron’s SR (Super Representative) nodes have not implemented any MEV mechanism, and no one can prioritize their transactions on-chain through price manipulation or manipulate blocks by rearranging, inserting, or deleting transactions to gain extra profits.Investigations show that Tron super nodes have not accepted bribes to facilitate front-running trades, and the official stance strictly prohibits any form of assistance for front-running.The so-called MEV trades identified by the community involve a large number of failed scenarios, where bots are using probabilistic methods to exploit victims.Front-running is a strategy employed by bots on every blockchain, and Tron is no exception. However, Tron’s design eliminates privileged mechanisms, such as prioritizing on-chain transaction senders. Additionally, the decentralized voting system supervises SR behavior, significantly reducing the likelihood of front-running and making the market fairer.

ChainCatcher news, the KyberSwap team announced that they have contacted the owners of frontrun bots who extracted approximately $5.7 million from KyberSwap liquidity pools on Polygon and Avalanche. After negotiations, the frontrun bot owners agreed to return 90% of the user funds to the designated address 0x8180a5CA4E3B94045e05A9313777955f7518D757 and accepted a 10% bounty as a reward, as described in on-chain messages.According to the announcement, approximately $4.67 million has been returned to KyberSwap's Polygon deployment address through the following transactions:813,198.63 dBSGG (approximately $813,198.63)361.92 axl-wstETH (approximately $870,500)441.8 WETH (approximately $919,000)261.5 wstETH (approximately $624,000)711,430.9 WMATIC (approximately $547,800)443,011.6 USDT (approximately $443,000)385,630.7 USDC (approximately $385,600)65,130 USDT (approximately $65,100)KyberSwap stated that they will continue to support law enforcement and cybersecurity experts in tracking and recovering the remaining funds of the hacking victims.

ChainCatcher news, Uniswap Labs stated on social media that Uniswap Wallet has launched Swap Protection to prevent front-running and sandwich attacks, improving the token transfer fee experience.

ChainCatcher news, Ethereum core developer and EIP-1559 co-author eric.eth stated on social media that today saw some of the largest MEV reward blocks in Ethereum's history. Slot 6,992,273 received a reward of 584 ETH; Slot 6,993,342 received a reward of 345 ETH; Slot 6,992,050 received a reward of 247 ETH; Slot 6,993,346 received a reward of 51 ETH.eric.eth mentioned that Curve was hacked, and a bot noticed the hacker intrusion in the MEV pool, replicated the tx, and front-ran it. To do this, they paid a large amount of ETH to the block producers to execute the front-running.

ChainCatcher news, over 30 Ethereum projects including Safe, BitKeep, DODO, Oasis, Balancer, and 1inch have collaborated to launch the MEV Blocker RPC, a tool designed to protect users from various types of MEV attacks.It is reported that the MEV Blocker protects users from front-running and sandwich attacks on Ethereum transactions. By using the MEV Blocker, users can enjoy a fast, free, and censorship-resistant RPC for processing transactions. By adding this RPC endpoint to their wallets, they can gain protection immediately. (source link)

ChainCatcher message, PeckShield stated on Twitter that the Ethereum validator address starting with 0xee5f was bribed by an MEV bot with 337.91 ETH (approximately $443,000) for front-running. (source link)

Chain Catcher news, BlockSec tweeted that a front-running bot scam has been discovered on the BNB Chain, where scammers teach users how to develop a "front-run bot" to make money, but the contract they provide has a backdoor, and after deployment, all of the victim's tokens will be transferred to the attacker's address. (Source link)