MRGN Research’s Ben Coverston says the Solana-based MEV bot has made an active effort to date to keep a low profile.

MEV Sandwich Bot 'arsc' Extracts $30 Million from Solana Users

Overview
The notorious maximal extractable value (MEV) sandwich bot, known as "arsc," has siphoned approximately $30 million from Solana network users over the past two months through MEV attacks. These attacks exploit the timing of transactions to manipulate prices and extract profits.

MEV Sandwich Attack Explained
In an MEV sandwich attack, the attacker places two transactions around a victim's transaction:
1. First Transaction: The attacker buys the token that the victim is attempting to purchase, driving up the price.
2. Victim's Transaction: The victim buys the token at the inflated price.
3. Second Transaction: The attacker then sells the token at the higher price, pocketing the difference.

This sequence allows the attacker to profit by exploiting the price difference created by the victim's transaction.

The 'arsc' Bot's Activity
Ben Coverston, founder of cryptocurrency firm MRGN Research, highlighted in a June 15 post on X that the 'arsc' bot has been meticulously avoiding attention while amassing significant profits from Solana users.

Key Wallets Associated with 'arsc'
Three primary wallets linked to 'arsc' have been identified:

1. 9973h...zyWp6:
- Role: Believed to be a cold storage wallet.
- Funds: Holds over $19 million, including $17 million in Solana (SOL) tokens and $1.1 million in USD Coin (USDC).

2. Ai4zq...VXKKT:
- Role: Active in decentralized finance (DeFi) activities.
- Funds: Holds over $9.9 million, mostly in non-SOL tokens. It is involved in converting SOL to USDC via JUP DCA and has significant positions in Kamino and various liquid staking tokens (LSTs).

3. BCbrp...vi58q:
- Role: Considered the "main SOL bank" for the bot's operations.
- Function: Uses multiple signers and tippers to execute sandwich attacks.

Total Holdings
Combined, these three wallets hold nearly $30 million, a testament to the bot's effectiveness in extracting value through MEV attacks.

Operator's Intent
Coverston notes that the operator behind 'arsc' appears to be making efforts to remain under the radar, as evidenced by recent attempts to obscure their activities and profits.

Broader Implications
MEV sandwich bots like 'arsc' are not unique to Solana. They are also prevalent on Ethereum, where they have exploited well-meaning users, resulting in significant financial losses. According to MEVBlocker, over $1.38 billion had been extracted from Ethereum users by April 2023.

Conclusion
The 'arsc' MEV sandwich bot's activities highlight the ongoing challenges posed by MEV attacks in the crypto space. While these bots can generate substantial profits for their operators, they do so at the expense of ordinary users, raising concerns about the fairness and security of decentralized networks. As the ecosystem evolves, addressing these vulnerabilities will be crucial to maintaining user trust and the integrity of blockchain platforms.