A Solana-based maximal extractible value (MEV) sandwich bot, identified as “arsc,” has reportedly accumulated approximately $30 million from Solana users over the past two months through MEV attacks. This information comes from Ben Coverston, founder of cryptocurrency firm MRGN Research.

MEV sandwich attacks involve a malicious entity placing a transaction immediately before and after a victim’s transaction within the same block. The attacker profits by buying the victim’s token at a lower price and then selling it at a higher price in the same block. This type of attack manipulates the price to the attacker’s advantage, effectively extracting value from unsuspecting users.

Coverston noted in a June 15 post on X (formerly Twitter) that the bot, known as “arsc,” has made deliberate efforts to maintain a low profile while amassing significant profits from users on the Solana network. One of the bot's major wallet addresses, “9973h…zyWp6,” is believed to be used primarily for cold storage, indicating it is seldom active and likely serves as a secure repository for funds.

Analysis by Solana explorer site SolanaFM shows that this wallet holds over $19 million in total funds, comprising $17 million worth of Solana (SOL) tokens and $1.1 million in Circle’s USD Coin (USDC) stablecoin. Additionally, it contains smaller amounts of wrapped-SOL (wSOL), Cringe Coin (CRINGE), and Kabosu (KAB).

Another prominent wallet associated with the bot, “Ai4zq…VXKKT,” is significantly more active in decentralized finance (DeFi) activities. Coverston explained that this wallet gradually converts SOL into USDC via JUP DCA and holds considerable positions in Kamino and various liquid staking tokens (LSTs). This wallet holds over $9.9 million in total funds, mostly consisting of non-SOL tokens.

Coverston identified a third wallet, “BCbrp…vi58q,” which he believes functions as arsc’s “main SOL bank.” This wallet is used to conduct the sandwich attacks and employs numerous signers and tippers. Collectively, the three wallets hold approximately $29.8 million based on current prices.

Coverston suggests that the operator behind arsc appears to be deliberately avoiding attention. “It seems they don't enjoy the attention, as they've recently gone to great lengths to hide their activities and profits,” he noted.

MEV sandwich bots are sophisticated algorithms designed to exploit arbitrage opportunities. While prevalent on the Solana network, these activities are also common among MEV bots on Ethereum. According to MEVBlocker, more than $1.38 billion had been extracted from Ethereum users through such tactics by April 2023.

The substantial profits generated by the arsc bot highlight the significant impact of MEV arbitrage on blockchain networks, underscoring the need for continued vigilance and improved safeguards to protect users from these sophisticated attacks.