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Uniswap loses over $25.2 million due to sandwich attack by hackers

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Hackers used a sandwich attack to steal approximately $25.2 million worth of cryptocurrency from the well-known decentralized crypto marketplace Uniswap.

The hacker could buy and sell tokens at inflated prices due to the attack, which took advantage of a flaw in Uniswap’s pricing system. This effectively scammed the exchange into sending money to the hackers’ wallets.

Uniswap, a decentralized exchange, faced a major security compromise ‘sandwich attack’. Assets worth $25.2 million were stolen from eight distinct Uniswap pools due to the hack. The incident emphasized the dangers of using decentralized exchanges and the need to exercise caution when dealing with such systems.

The attackers exploited a flaw in Uniswap’s smart contract, which allowed them to execute a series of transactions that eventually allowed them to withdraw funds from vulnerable pools.

The stolen money was traced to eight different addresses, indicating that a group of people may have planned the crime. Although the names of the attackers are unknown, the episode highlights the need for continued vigilance in the face of more sophisticated attacks.

Several MEV bots executed sandwich trades based on the history of Etherscan transactions. Getting other traders to buy or sell the asset is the goal of shifting the price in the desired direction. Then the validator was used to replace the reverse coefficients.

Since then, Uniswap has taken action to fix the vulnerability that was exploited in the attack and asked its users to continue to be vigilant in guarding their funds. Since blockchain technology is decentralized, no central authority can intervene to recover the funds that have been stolen, which underscores the need for users to take responsibility for their own security.

The incident is a reminder of the growing threat of MEV attacks on the cryptocurrency ecosystem. Since autotrading bots have expanded recently, MEV attacks have become more frequent. Developers and users should be aware of such attacks and take precautions to protect their systems.

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