As an analyst with extensive experience in the cryptocurrency space, I find the activities of the infamous “arsc” sandwich bot on the Solana network both intriguing and concerning. The sheer scale of profits amassed by this bot within just two months is astounding, reaching over $30 million.
Within a mere two-month period, the notorious “arsc” bot, known for its ability to extract maximum value (MEV), amassed approximately $30 million by taking advantage of vulnerabilities in Solana users through MEV attacks.
As a crypto investor, I’ve come across the concept of MEV (Minimum Value Extracted) sandwich attacks. In simpler terms, these are tactics used by attackers to exploit price discrepancies between transactions in the same block.
As a researcher investigating the cryptocurrency market, I uncovered some intriguing information on June 15 regarding an elusive bot named “arsc.” This bot, which has been covertly operating within the Solana network, has been profiting at the expense of unsuspecting users. Ben Coverston, founder of MRGN Research, brought this issue to light.
In the previous 1 to 2 months, the notorious Arsc sandwiched bot on the Solana platform has amassed approximately $30 million in earnings!
The majority of these profits are currently held in the following two wallets:
[List the wallet addresses here]
— Ben (@HypoNyms) June 15, 2024
As an analyst, I’ve noticed that the bot under scrutiny seems to adopt a cold storage approach for safeguarding its digital assets. The wallet address in question, “9973h…zyWp6,” is predominantly used by this bot for this purpose.
Based on its lack of activity and observable traits, it appears to be a securely sealed, dormant digital wallet.
Ben Coverston
The wallet currently holds over $19 million in combined assets. Approximately $17 million of this sum is represented by Solana tokens, while around $1.1 million is made up of Circle’s USD Coin (USDC) stablecoin. Additionally, the wallet includes small quantities of Kabosu (KAB), Cringe Coin (CRINGE), and Wrapped Solana (wSOL).
Coverston pointed out that the wallet labeled as “Ai4zq…VXKKT” is notably more engaged in decentralized finance transactions. He mentioned that this particular wallet consistently swaps Solana (SOL) for USD Coin (USDC) through Jupiter’s dollar-cost averaging (DCA) function. This feature enables users to set buy orders at designated price points, thus reducing potential price fluctuation during trades.
The founder of MRGN Research highlighted that the wallet contains sizeable investments in Kamino and various other liquidity-staking tokens, amounting to more than 9.9 million dollars, predominantly consisting of tokens outside the Solana ecosystem.
Coverston mentioned a third cryptocurrency wallet with the address “BCbrp…vi58q,” which he claims is arsc’s primary Solana account. Together, these three wallets contain tokens worth approximately $29.8 million based on current market values, suggesting that arsc’s operator has been attempting to keep a low profile.
They appear to be uncomfortable with the limelight, having taken extensive measures lately to conceal their operations and financial gains.
Ben Coverston
As a market analyst, I’ve observed that sophisticated MEV (Maximal Extractable Value) bots employ intricate algorithms to seize profitable opportunities in the market. Akin activities have been detected among similar bots on Ethereum. For instance, earlier this year, an operator of an MEV arbitrage bot, recognized as 2Fast, raked in a substantial gain of $1.8 million from a single transaction bundle.
As an analyst, I’d rephrase it as: “Under 2Fast’s guidance, the bot grew an initial investment of $70,000 in SOL to an impressive $1.9 million, or 19,035 SOL.” Furthermore, a generous reward of 890 SOL was bestowed upon Figment, a notable network validator.
Regulatory bodies, including the European Securities and Markets Authority (ESMA), are growing increasingly concerned about the actions of MEV bots and are looking into possible violations of market regulations. ESMA is currently examining MEV as a potential form of illegal market manipulation in the context of its proposed MiCA regulation for crypto-assets.
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2024-06-17 11:36