Tether ( USDT), MEVblacklisted the wallet address of the Ethereum validator who exploited his bots.
In the last month’s MEV bot exploit, an Ethereum validator was about to $25 million It was stated that abuse was the leading role. The Ethereum validator that committed the exploit reversed the MEV bots that were trying to execute a sandwich transaction. With this move, It exploited a fault in the MEV-boost relay.
Finally Tether announced that it has blacklisted the wallet address of the abuser in question. Tether’s approach has drawn criticism from the crypto community.
Tether Blocks MEV Abusers
MEVabuser, $25 millionled to loss and was the largest to date. MEV took part in the exploitation. Etherscan flagged the address of the Ethereum validator, warning that it was involved in the exploit.
A move to crypto wallets belonging to the abuser also came from Tether. USDTissuer Tether, MEVblacklisted the crypto wallet address of its exploiter.
The blacklisting of the validating wallet address has received some backlash from the community for its censorship approach. authorized at Kraken Arthur, MEV bots also benefit from traders and blacklisting He said it was “nonsense”.
There have been intense reactions from the crypto community on the subject. co-founder of Polygon Jaynti Kanani , rated Tether’s action as a “bad precedent”. Moreover, Fastlane Labsco-founder Jordan Hagan, “The most worrying DeFi development of 2023”made a comment.
