A Smart Coinbase Bot Makes $1 Million from Hack
A smart Coinbase bot took advantage of a hack against Curve Finance in July, earning the crypto exchange $1 million. The hack disrupted Curve’s asset-pricing system, and the Coinbase trading bot seized the opportunity to make a profit. It paid 570 ETH to capitalize on an arbitrage opportunity, resulting in a $1 million gain for the exchange. However, Coinbase is facing criticism for not returning any of the money to the victims of the hack.
Criticism for Not Returning Funds
Alchemix, which lost $22 million in the hack, has requested that Coinbase return the funds to the victims. Despite benefiting directly from the exploit, Coinbase has shown no willingness to reimburse those affected. While there is no legal obligation for Coinbase to do so, Alchemix believes that keeping stolen money is unfair and unjust.
We are so thankful to a whitehat MEV bot operator who returned 43.3 ETH made from arb profits following the @CurveFinance exploit of the $alETH / $ETH pool.
This will be added to funds for redistribution.
Return Txhttps://t.co/UgQ5ag71y8https://t.co/8TIbR3BRSZ pic.twitter.com/BCop05EWjN
— Alchemix (@AlchemixFi) September 4, 2023
Coinbase Has Nothing To Say
Alchemix claims that Coinbase is keeping stolen money and alleges that the exchange’s representatives have stated they have no legal obligation to return it. However, Coinbase has not provided any additional information or comments on the matter.
The Tricky Nature of Crypto
While most of the stolen funds have been recovered, this incident highlights the complexities and uncertainties of the crypto world. The lack of legal clarity and investor protection allows exchanges like Coinbase to potentially retain gains obtained through dubious means.
Hot Take: Coinbase Under Fire for Not Returning Hacked Funds to Victims
Coinbase is facing criticism for not returning any of the $1 million it earned from the Curve Finance hack to the victims. Despite benefiting directly from the exploit, Coinbase has refused to reimburse those affected. Alchemix, one of the victims who lost $22 million, has called out Coinbase for keeping stolen money. While there is no legal obligation for Coinbase to return the funds, this incident sheds light on the challenges and lack of regulations in the crypto space. It raises questions about investor protection and the ethical responsibilities of crypto exchanges like Coinbase.
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