Memecoin analysis and trading platform GMGN.Ai has completed full compensation to users affected by the recent Maximum Extractable Value (MEV) attack that affected hundreds of transactions over the weekend, its co-founder said.
GMGN posted an update on X stating, “GMGN’s BSC anti-sandwich node recently faced multiple sandwich attacks. It successfully recovered several hours ago and we are currently investigating the cause.”
The attack reportedly occurred on Saturday, October 25th, from approximately 8:35 a.m. to 21:34 p.m. UTC, and affected 729 transactions.
GMGN recovers quickly after targeted exploit
GMGN said full redemption is underway. “Affected users do not need to do anything. The refunded funds will be automatically deposited into their wallets within a few hours,” GMGN said in a post on X, notifying users to check their balances later.
In a post on X, GMGN co-founder Hayes said that the team has calculated the losses, completed the distribution of compensation to users affected by the MEV attack, and transferred the compensation to the wallets of the affected users yesterday, i.e. on October 26th.
GMGN’s response included some praise for X’s speed and transparency. A sandwich attack, a type of MEV manipulation, occurs when a bot detects a user’s pending transaction on the blockchain and makes its own transactions immediately before and after it. By “pinching” users’ orders, attackers can manipulate prices and extract profits, leaving victims with worse trade execution.
While GMGN’s anti-BSC sandwich capabilities are specifically designed to counter such tactics, users will also look forward to the company’s reporting on its ongoing investigation to determine the scope of the exploit in terms of the root cause of the breach and the amount lost.
Industry considers growing challenges for MEVs
The GMGN incident has once again brought the issue of MEV abuse in DeFi into the spotlight. MEV refers to the additional profit that miners, validators, or bots can earn by manipulating the order of transactions on the blockchain.
Although technically allowed on various platforms, including GMGN, this practice has its own criticisms given the fact that it can be misused and have the potential to negatively impact users. However, GMGN traders can turn on anti-MEV mode to prevent trades from getting pinched.
The GMGN attack highlights that even platforms built with anti-MEV protections remain vulnerable to increasingly sophisticated strategies.
The incident also points to the operational risks that DeFi protocols continue to face.
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