TechFlow news, on August 14, according to The Block, Venn Network security researcher deeberiroz disclosed that Coinbase lost approximately $300,000 in token fees to MEV bots due to a configuration error involving the swapper contract of decentralized exchange protocol 0x. The contract was originally intended for executing trades and is unsuitable for receiving token approvals. After Coinbase mistakenly granted it authorization, bots exploited the contract to drain tokens from Coinbase's fee account.
Coinbase Chief Security Officer Philip Martin confirmed the incident, stating the issue stemmed from adjustments to the corporate DEX wallet, did not affect customer funds, and that the team has revoked the authorization and transferred the funds to a new corporate wallet.
