An Ethereum theft has drawn the attention of the community after carrying out numerous sandwich attacks against users of the network, profiting millions of dollars in its fraudulent action.
Normally, their action is focused on attacking users in decentralized brokerages. This is because the technique used by theft consists in intercepting user transactions and selling the coins to them at a higher price.
Known as a sandwich attack, the attack by “JaredFromSubway.eth” has raised several concerns among ethereum users. second rush of Livecoinsthe breeder of the contract maintains, in the meantime, 500 thousand dollars not straight to carry out the operations against their victims.
Theft of Ethereum accumulates thousands of dollars in profit with sandwich attacks
As of the beginning of May 2023, the robbery “jaredfromsubway.eth” had already earned less than 6 million dollars, according to a study of eigenphi. To make a profit, he intercepted $40 million of victim transactions, paying $34 million in Ethereum taxes to have his operations confirmed earlier.
Data from the company show that the right is one of the two most famous robberies of 2023, but it is not the only one profiting from fraud.
This is because, in the last 24 hours, some sandwich attacks have resulted in profits of up to 18,000% for their breeders, showing that the practice continues to run at full steam, mainly on the Uniswap brokerage.
In April 2023, the director “jaredfromsubway.eth” managed to spend 885 thousand dollars in Ethereum taxes in a single day, profiting more than US$ 2.7 million with his attacks on memecoins like Pepe, for example.
Understand how a “sandouíche attack” works
The term “sanduíche attack” (or sandwich attack, in English) refers to a strategy used in some types of decentralized financial transactions (DeFi) in the Ethereum ecosystem. Specifically, this type of attack occurs at times when the prices of two underlying assets are suffering high volatility.
Suppose a trader wishes to carry out a transaction in a DeFi protocol that involves exchanging an asset for another, for example. The trader can define a price limit for this transaction, hoping that the price of the asset will move in a favorable direction.
However, an attacker can monitor non-protocol transactions and perceive when a large order is ready to be executed. The attacker then performs two actions.
First, the attacker makes a transaction that affects the price of the underlying asset. Then, the attacker can make a large purchase or sale of a certain cryptocurrency in a centralized exchange, temporarily influencing its price.
After that, the attacker sends a transaction to the DeFi protocol with a price that takes advantage of the temporary price change caused by the first transaction. The attacker’s objective is to execute the transaction before the trader’s original transaction is confirmed, taking advantage of the price difference.
In this way, the attacker manages to obtain profits at the costs of the original trader, in a matter of seconds. The profit occurs buying or selling or active at the advantageous price before the price returns to normal due to the original transaction of the trader.
This type of attack becomes possible because the transactions in DeFi protocols occur in a sequence of blocks, and the price of an asset can change significantly between the blocks. Furthermore, since the Ethereum ecosystem is public and transparent, attackers can monitor ongoing transactions and plan their attacks.
With the use of thefts such as “JaredFromSubway.eth” then, the transactions occur much faster and cause more damage. Some ethereum protocols seek or end the fraudulent use of two robberies, arguing that sandwich attacks harm the ecosystem.
It is worth mentioning that in the USA, or “Jared From Subway” is a famous case of pedophile Jared Fogle, arrested and convicted by authorities in 2015. He had become famous in previous years, claiming that he lost 100 kilos just eating Subway daily.