Tether, the issuer of the USDT stablecoin, has taken steps against an attacker who recently stole $25 million worth of cryptocurrencies from MEV bots through the use of a Sandwich method attack.
The hacker took advantage of a security vulnerability in the decentralized exchange Uniswap on the Ethereum blockchain, and as a result, several MEV bots were affected.
This attack method is frequently used by cybercriminals to manipulate prices on decentralized exchanges by creating specially crafted bots to scan memory pools for a transaction.
Once found, the bot initiates two transactions – one before the deal and one after the deal – which effectively wraps the victim’s transaction.
In response to the attack, Tether has blacklisted the attacker’s address, known as Sandwich the Ripper, to prevent any further malicious activity.
Unfortunately, the Uniswap attack is not an isolated incident, as the South Korean cryptocurrency exchange Gdac and the decentralized exchange SushiSwap have also recently been targeted by hackers, with significant amounts of money stolen in each case.