Ethereum Sandwich Bot Loses $7.5M in Honeypot Trap

The Ethereum sandwich bot, jaredfromsubway.eth, lost $7.5 million in a honeypot trap over the weekend.

The attack targeted the approval flow embedded in the bot's automated trading system rather than any specific line of vulnerable code.

The attacker deployed 66 counterfeit token contracts imitating familiar DeFi assets and paired them with fake liquidity pools, tricking the bot into granting approvals that were later used to drain its funds.

The total financial damage from unchecked ERC-20 approvals across the broader DeFi ecosystem has reached approximately $417 million since 2020, according to Revoke.cash data cited by Circle.