ETH wallet exploit backfires as MEV bot captures $7.7M, Kelp freezes address
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
An attacker exploited a custom module tied to an Ethereum Safe wallet to try to extract about $7.7 million in rsETH. However, an MEV bot named Yoink front-ran the transaction and captured the rsETH before the attacker could. The protocol behind rsETH, Kelp, then froze the receiving address for 24 hours as a precaution, while stating their contracts and tokens remained secure.
Why it matters
This event highlights the increasing role of MEV bots in intercepting exploits and protecting funds in real time. It also demonstrates Kelp’s swift response to potential threats by freezing addresses to limit further malicious activity. The source does not elaborate further on broader market or policy implications.
Key context
The attacker used a public keeper multicall to manipulate a Uniswap v4 liquidity module into an attacker-controlled pool to unwrap aEthrsETH into rsETH. The compromised wallet was identified by Blockaid as a Safe belonging to an unidentified user. Kelp confirmed that their contracts were unaffected and that the attack exploited a custom module attached to the victim’s Safe.
Key numbers and entities
The attempted theft involved approximately $7.7 million in rsETH. The MEV bot named Yoink transferred around 18.93 ETH (~$46,000) to a block builder address during the transaction. Key organizations mentioned include blockchain security firm Blockaid, the MEV bot Yoink, and the protocol KelpDAO behind rsETH.
What remains unclear
The identity of the Safe wallet’s owner remains unknown. The full technical details of the custom module exploit are not disclosed. Cointelegraph had not received additional comments from Blockaid or Kelp at the time of publication.