Trader loses $2M in ‘same-block backrun extraction’ exploit
One crypto trader noted the $2 million loss could have been prevented had the victim read the transaction route before signing the transaction.
A trader who swapped $2.01 million worth of Ether on a decentralized exchange has been left with just $14,500 worth of tokens after a router directed the order through a low-liquidity pool, allowing an Ethereum block builder to profit massively from a same-block arbitrage trade.
The trader swapped 1,126.44 of Ether (ETH) but only received 5,776 Lighter (LIT) tokens, in a “textbook case of same-block backrun extraction,” according to GoPlus Security.
“This was a real, highly imbalanced backrunner arbitrage, not a classic sandwich attack,” GoPlus Security said. Titan Builder was the biggest beneficiary, walking away with $1.8 million from the transaction, which took place on Monday at 1:59 am UTC.