Key facts
- A crypto trader lost over $2 million in a DeFi exploit.
- The exploit occurred when a transaction was routed through a low-liquidity pool.
- A block builder profited $1.8 million through a same-block arbitrage trade.
- The trader received significantly fewer tokens than expected due to inflated prices.
- The incident is attributed to Maximal Extractable Value (MEV) bots and liquidity routers.
A cryptocurrency trader experienced a loss of over $2 million after a swap on a decentralized exchange was manipulated by a block builder. The trader intended to swap 1,126.44 Ether (ETH) but received only 5,776 Lighter (LIT) tokens, leaving them with approximately $14,500. This occurred because the transaction was routed through a low-liquidity AVAIL/WETH pool on Uniswap v3, inflating the price of AVAIL tokens. A block builder, identified as Titan Builder, exploited this by extracting around $1.8 million in profit through a same-block arbitrage trade. GoPlus Security described the incident as a 'textbook case of same-block backrun extraction,' distinct from a classic sandwich attack. The trader's loss amounted to 99.3% of their initial investment. This event serves as a stark reminder of the risks posed by Maximal Extractable Value (MEV) bots and liquidity routers in the crypto space. Crypto trader Ruslan Khairullin advised users to carefully review transaction routes before confirming trades to mitigate such risks.