Crypto Trading Bot Is Racking Up Profits, Big Fees With ‘Sandwich’ Attacks
- Traders used high-frequency bots identifying potential profits
- The cost of attacks also came with millions of dollars in fees
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An anonymous trader linked to a digital wallet labeled “jaredfromsubway.eth” has become the talk of the decentralized finance world the last few days after racking up both big fees and profits through a strategy known as sandwich attacks.
The wallet for the so-called trading bot operator is a play on name of the disgraced former spokesman for the US restaurant chain. In the sandwich maneuver, a trader places on order for a token on a DeFi app. Before the order is executed, a bot can snap up that token on the exchange. That drives up the price of the token on that exchange. After the price has risen, the bot sells the token for a profit.