Recent reports indicate that there is a new type of exploit making rounds on the Ethereum (ETH) network after an unlucky victim was swindled out of 121 Ether.
According to a report by blockchain security firm PeckShield, an Ethereum user was tricked by a network validator into paying exactly 121.56 ETH (worth about $158,000 at press time) in gas fees for a single transaction, which the validator conveniently pocketed.
The details of how the exploit happened have yet to be discovered at the time of writing. However, MEV, which is the method of taking value from transactions by rearranging them while a block is still being constructed, looks to be connected to the attack, according to PeckShield. MEV-Boost relays on Ethereum allow MEV strategists to take advantage of these on-chain opportunities through arbitrage.
The most established company within the MEV sector, Flashbots, completed the transaction using an MEV-Boost relay and a block-builder from builder0x69. Meanwhile, the validator that delegated block production to the relay is connected to the liquid staking protocol Lido. However, at the time of writing, it was unclear which of the parties was in charge of inflating the gas fee.
Ethereum Launches Shanghai Testnet: Shandong
In other news, Ethereum developers have successfully launched a testnet for the Shanghai update, the first and most notable update since the network underwent its Proof-of-Stake (PoS) transition on September 15.
The latest "Shandong" test network (testnet) was released on Ethereum on October 14, allowing programmers to start testing their protocols on Shanghai, the next critical Ethereum upgrade.
The pre-Shanghai testnet, Shandong, will operate in close cooperation with EF DevOps and substantially impact the activation of many chosen EIPs that are taken into consideration for Shanghai. That said, the Shanghai update is expected to go live sometime next year.
The Ethereum development team said that other EIPs are already being reviewed for inclusion and that with the update, the first five Ethereum Improvement Proposals (EIPs) on the testnet would go live.
The chosen EIPs may be able to alleviate some of the network's scalability and efficiency problems. The EIP 4895 is one of the most eagerly awaited ideas, nevertheless.
Finally, Ethereum developers have started testing the process of "unstaking" their staked Ether (sETH) on the Beacon Chain and withdrawing these stakes, together with any incentives they may have accrued in the interim.
ETH has Seen Better Days
Ethereum (ETH) has definitely seen better days as it heads into the last week of October in a subdued mood. The second-largest cryptocurrency has largely maintained its trading activity within the $1,400 - $1,260 range since mid-September.
With no major market-moving data or events on the horizon, Ether is projected to remain within this channel, with the possibility of a brief return to the $1,200 - $1,100 zone.
ETH Statistics Data
ETH Current Price: $1,300
ETH Market Cap: $158.6B
ETH Circulating Supply: 122.3M
ETH Total Supply: 122.3M
ETH Market Ranking: #2
This article should not be taken as a piece of financial advice. It is essential to conduct your research before making investment decisions.