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Solana Foundation Takes Action Against Validators Involved in Sandwich Attacks

Jun 11, 2024

The Solana Foundation has implemented decisive measures against a group of Solana validators accused of engaging in sandwich attacks targeting cryptocurrency traders. Over the recent weekend, more than 30 validator operators were ousted from the Solana Foundation Delegation Program, eliminating their payout boosters for validating transactions on the Solana blockchain. These validators, primarily of Russian descent, were expelled from the delegation program due to suspected participation in what is known as a 'sandwich attack' – a strategy where automated bots conduct trades before and after a pending transaction to manipulate asset prices and exploit traders for financial gain.

The core of this problem stems from the utilization of mempools, acting as holding areas for unconfirmed transactions. Although Solana itself does not have an inherent mempool, Jito Labs previously offered third-party validator software that included this feature. However, amidst concerns regarding persistent and costly sandwich attacks during Solana's meme coin craze, Jito Labs deactivated the mempool function in March. Despite this action, rumors of underground mempools enabling sandwich attacks quickly surfaced, leading to certain operators reportedly profiting significantly.

In response, the Solana Foundation has taken a strict stance against validators involved in mempools facilitating such attacks. This step aligns with the Foundation's dedication to combatting malicious activities within its ecosystem and safeguarding users from exploitation. Tim Garcia, the lead of Solana validator relations, stressed that operators engaged in harmful practices, including association with private mempools for sandwich attacks, will be expelled from the delegation program.

It is essential to highlight that the Solana Foundation Delegation Program, designed to assist validators by allocating SOL tokens, aims to uphold the integrity of the Solana network. Validators play a vital role in block generation and transaction validation, with their selection based on performance metrics.

Mert Mumtaz, the co-founder of Solana RPC provider Helius, emphasized the Foundation's commitment to shielding retail users from falling prey to unscrupulous operators. He underscored the Foundation's dedication to protecting user investments and maintaining trust in the Solana ecosystem.

In conclusion, recent developments within the cryptocurrency domain, particularly those within the Solana ecosystem, serve as a poignant reminder of the proactive measures being implemented by industry stakeholders. The actions taken by foundations and platforms to confront and penalize individuals involved in such activities illustrate an increased awareness and dedication to upholding integrity within the crypto sector. These initiatives not only signify an evolving industry but also underscore the collective responsibility to nurture trust, transparency, and accountability, thereby fortifying the groundwork for the future of cryptocurrency adoption and innovation.

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