Coinbase Loses $300K to MEV Bots After 0x Swapper Interaction, Researcher Reports

Coinbase confirmed that erroneous authorization of a 0x swapper led to an MEV bot-facilitated $300K token fee theft, addressed promptly without impacting customer funds.

209d ago

Fact Check

All 14 provided sources, which include numerous reputable crypto news outlets like CoinDesk, The Block, and Cointelegraph, unanimously corroborate every element of the statement. There is strong, consistent reporting that Coinbase lost approximately $300,000 to MEV bots due to a contract misconfiguration involving an 0x swapper contract, and that the issue was initially highlighted by a researcher.

Summary

Coinbase mistakenly authorized a 0x swapper contract, allowing an MEV bot to steal around $300K in token fees. Coinbase CISO Philip Martin explained that the issue stemmed from corporate DEX wallet adjustments and assured that customer funds were not affected. The authorization was revoked and the funds transferred to a new wallet.

Terms & Concepts

MEV bots: Automated agents that exploit transaction ordering on blockchains to extract additional value through front-running strategies.
0x swapper: A protocol designed for decentralized token swaps, implicated in the transaction that led to financial losses at Coinbase.