Cornell Tech confirms bots are front running across decentralized exchanges (DEXs) by paying higher fees to get their order moved ahead. While DEXs like EtherDelta and Bancor only account for a small fraction of crypto volume today, they see 500 bots currently making up to $20k a day with such activities.
EtherDelta founder Zachary Coburn reached a settlement in November with the U.S. Securities and Exchange Commission for operating as an unregistered national securities exchange. The company did not immediately respond to requests for comment. The researchers even built their own bot to better understand how such trading practices were possible -- and, to their surprise, even received buyout offers, Juels said. They declined. "This should incentivize the community to consider new exchange designs," Juels said. Published on April 15, 2019, 12:44 PM EDT Updated on April 15, 2019, 2:06 PM EDT