Ethereum Sandwich Bot Drained of $7.5M After Attacker Exploits Its Own Playbook

A notorious Ethereum sandwich bot operated by JaredfromSubway.eth has been drained of $7.5 million in June after an attacker exploited its own playbook against it.

The bot, which extracts MEV (Maximal Extractable Value) from trades since March 2023, has pulled in over 117,000 ETH ($295 million) through a process called sandwich attacks, where the bot takes advantage of traders' slippage tolerance to make profits.

The attacker used 66 fake token contracts on Ethereum, dressing them up as familiar names like WETH, USDC, and USDT. The bot's automated trading logic then granted token-spending approvals to the attacker's malicious contracts, allowing them to drain at least $7.5 million in ETH and stablecoins before laundering the proceeds through Tornado Cash.

The incident highlights the irony that a bot built to exploit other traders' blind spots got taken down by the exact mechanism that makes its own business model possible.