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Unlucky MEV Bot Fails with $11.9 Million Flash Loan

Sep 6, 2024
  1. MEV Bot's Unsuccessful Operation
  2. How Sandwich Attacks Work
  3. History of Successful MEV Attacks

On September 5, blockchain analytics firm Arkham Intelligence revealed that an MEV bot attempted a sandwich attack with a $11.97 million flash loan but earned just $20.

MEV Bot's Unsuccessful Operation

According to Arkham Intelligence, the MEV bot took a $11.97 million flash loan in Wrapped Ether (WETH) for a sandwich attack on a user attempting to swap $5,000 worth of Shuffle (SHFL) tokens. Despite the high stakes, the bot earned only $20 after gas fees.

How Sandwich Attacks Work

A sandwich attack occurs when an attacker places two transactions around a victim’s trade. The attacker manipulates the price by buying before the victim and selling after, pocketing the difference. In this case, the MEV bot's profits were significantly underwhelming.

History of Successful MEV Attacks

Although this attack failed, many other MEV attacks have brought operators significant profits. In April 2023, a bot operator named *jaredfromsubway* earned over $1 million in just one week using sandwich attacks on PEPE and WOJAK tokens.

Despite this MEV bot's failure, attacks using flash loans remain a profitable tool for many operators.

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