Coinbase Loses $300K to MEV Bots in Swap Error
Coinbase loses $300K due to a 0x swapper mistake. No customer funds affected, confirms CSO.
- Coinbase lost $300K to MEV bots via a faulty 0x swap
- No user funds were impacted, says Coinbase’s CSO
- Token allowances revoked, funds moved to new wallet
Coinbase has suffered a $300,000 loss after mistakenly using the 0x swapper in a way that exposed the transaction to MEV (Maximal Extractable Value) bots. The incident was confirmed by Coinbase’s Chief Security Officer, who clarified that no customer funds were involved in the loss.
The problem occurred due to the incorrect usage of the decentralized exchange aggregator 0x. The mistake allowed MEV bots—automated systems that exploit transaction opportunities on-chain—to drain funds from the transaction. These bots front-run or sandwich transactions to extract profit at the cost of the user.
This time, the victim wasn’t an average crypto trader—it was Coinbase itself.
Immediate Action to Secure Corporate Funds
Following the loss, Coinbase’s team acted swiftly. The company has revoked token allowances related to the affected contract and started migrating funds to a new corporate wallet to ensure no further exposure.
While this may seem like a minor operational mishap, it underscores how even major players in the crypto space can be vulnerable to MEV exploitation. This also highlights the importance of double-checking smart contract interactions, especially in decentralized finance (DeFi) systems.
No Customer Risk, But a Lesson for All
Although no customer assets were involved, the event serves as a wake-up call across the industry. DeFi protocols and MEV exploitation continue to present real risks. Coinbase’s transparent response and rapid mitigation steps should be seen as a best-practice example for how to respond when something goes wrong on-chain.
Still, this $300,000 error is a costly reminder that security, even at the corporate level, must always come first.
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