This is a fundamental exploit at the blockchain level, I wonder why there isn't more chaos:<p>The brothers created 16 Ethereum validators and targeted three specific traders who operated MEV bots, the indictment said. They used bait transactions to figure out how those bots traded, lured the bots to one of their validators which was validating a new block and basically tricked these bots into proposing certain transactions. The brothers allegedly frontran the bots on certain trades and also used their validator to "tamper with" the new block by sending a false digital signature that gave them access to the block's full contents and replaced "lure transactions" with "tampered transactions." In those tampered transactions, the brothers allegedly sold illiquid cryptocurrencies they had tricked the victims' trading bots into placing buy orders for.
This is interesting. Two brothers figured out an exploit of the mevboost software run by most Ethereum validators. They used it to frontrun the frontrunners (mevbots) and trick them into buying $25 million in unspendable cryptocurrencies in return for liquid stablecoins and other liquid crypto. Now the US DOJ is criminally charging them for it. Will be an interesting test of whether "code is law" in cryptocurrency.