The Ethereum Foundation, the organization leading the development of this blockchain, made a fresh sale of ETH in exchange for millions of dollars. This time, the organization was the victim of the vicious fees market structure ruling transactions on the network.
Ethereum Foundation Victim Of This Attack
According to crypto journalist Colin Wu, an attacker extracted around $10,000 from the Ethereum Foundation. When the organization moved 1,7000 ETH to decentralized exchange (DEX) Uniswap, the transaction was caught up in a “Sandwich Attack.”
Conducted by a Maximal Extractable Value (MEV) bot as part of a strategy to profit from the fees market on the network. These bots front-run other users on the network and exploit the transaction structure by placing two transactions between the one they are trying to “attack.”
In this case, an MEV bot placed two transactions between the Ethereum Foundation’s ETH operation. The first of these transactions is placed after the bot spots the large ETH transfer, and then the entity sends a similar transaction, paying a larger fee and frontrunning the foundation.
Later, the Foundation is forced to pay more for the transaction, directly impacting the price of ETH. The short boost is captured by the second transaction placed by the MEV bot.
As the report stated, the “Sandwich Attack” cost the…
