Coinbase Suffers ~$300K MEV Exploit Due to Misconfiguration in 0x Swapper Interaction

BlockBeats News, August 14th. According to Venn Network security researcher deeberiroz, Coinbase has revealed that it lost approximately $300,000 in token fees to an MEV bot due to a misconfiguration in its swapper contract with the decentralized exchange protocol 0x. The contract, originally used for transaction execution, was not intended to receive token approvals. After Coinbase mistakenly approved it, the bot invoked the contract to transfer the tokens from Coinbase's fee account.

Coinbase's Chief Security Officer, Philip Martin, confirmed the incident, stating that the issue originated from an adjustment to the enterprise DEX wallet and did not impact customer funds. The team has revoked the approval and transferred the funds to a new enterprise wallet. (The Block)