MEV bot makes $1M, but then loses it all to a hacker one hour later.

In an ironic twist of events in Decentralized Finance (DeFi), an Ethereum arbitrage trading robot managed to win the jackpot and then lose it all at once.

Robert Miller, a researcher at Flashbots, shared the story of how a Maximal Extractable Valu (MEV) bot using the prefix 0xbadc0de was capable to earn 800 Ether ( ETH), approximately $1 million through arbitrage trades.

Miller claims that the bot took advantage a huge arbitrage opportunity when a trader tried to sell $1.8million in cUSDC via the decentralized Exchange (DEX) Uniswap v2 but received only $500 in assets back. This opportunity was immediately recognized by the bot and it reacted quickly to make huge profits.

A hacker discovered a flaw in 0xbadc0de “bad code” within an hour and forced it to authorize a transaction that took its balance of 1,101 Ethereum, approximately $1.41million at the time.

The bug was spotted by PeckShield, a blockchain security company. This routine is used by the hacker to approve spending at an arbitrary address.

Related: Pantera CEO is bullish about DeFi, Web3 & NFTs as Token2049 gets underway

A vulnerability in Profanity (an Ethereum vanity address generator) was exploited on Sept. 18. The attack took $3.3 million out of various wallets. 1inch Network, a decentralized exchange (DEX), found that the creation of wallets was unclear. DEX warned users about the danger to their wallets and advised them to move their assets.

A week later, another vanity address was exploited. was drained of nearly $1 million of Ethereum. The hackers immediately stole the funds and sent them to Tornado Cash, a controversial crypto-mixer.

Opinion writer on 7trade7