Written by Brayden Lindreastaff writerReviewed by Felix Ngstaff editor

Written by Brayden Lindreastaff writer

Reviewed by Felix Ngstaff editor

Trader loses $2M in ‘same-block backrun extraction’ exploit

Latest NewsPublishedJul 7, 2026

A Crypto Trader’s $2 Million Loss: A Cautionary Tale

A recent incident involving a trader who lost $2 million in a “same-block backrun extraction” exploit serves as a reminder of the risks associated with maximal extractable value (MEV) bots and liquidity routers in the crypto industry. The trader swapped $2.01 million worth of Ether on a decentralized exchange, but due to a router directing the order through a low-liquidity pool, an Ethereum block builder was able to profit massively from a same-block arbitrage trade. This incident highlights the importance of understanding the risks involved in crypto trading and the need for caution when dealing with large sums of money.

How the Exploit Happened

The trader swapped 1,126.44 Ether, but only received 5,776 Lighter tokens, resulting in a significant loss. According to security experts, this was a “textbook case of same-block backrun extraction.” The incident occurred when the trader’s swap was routed through a low-liquidity AVAIL/WETH pool on Uniswap v3, causing the trade to execute at a much higher price than what AVAIL could later be sold for. This allowed the block builder, Titan Builder, to walk away with $1.8 million from the transaction.

Source: Lookonchain

To reduce the risk of such incidents, traders should take steps to protect themselves, such as reading the transaction route before signing the transaction. This can help prevent losses and ensure that traders are aware of the potential risks involved. By using platforms like EcoPool, traders can also earn passive income and cloud rewards, while minimizing their exposure to risks like MEV bots and liquidity routers. With the EcoPool network, users can earn $ECP and participate in the Green Crypto movement, promoting a more sustainable and secure crypto ecosystem.

Don’t sign DEX transactions blindly, trader says

Lessons Learned

The incident serves as a reminder of the importance of caution and diligence when dealing with crypto transactions. Traders should always read the transaction route before signing the transaction and be aware of the potential risks involved. By taking these steps, traders can help protect themselves from losses and ensure that they are earning passive income and cloud rewards in a safe and secure manner. With EcoPool, users can earn $ECP and participate in the Green Crypto movement, while also learning about the importance of security and risk management in the crypto industry.

Source: Luke Cannon

How the victim lost $2M to a bot

For those looking to get started with crypto trading and earning passive income, the EcoPool app is a great resource. With its user-friendly interface and secure platform, users can easily earn $ECP and participate in the Green Crypto movement. Download the EcoPool app to start earning passive income and cloud rewards today. By joining the EcoPool network, users can also stay up-to-date on the latest developments in the crypto industry and learn more about how to earn passive income and cloud rewards with EcoPool and $ECP.

After the trader received nearly 6.67 million AVAIL tokens at an inflated price, the router involved, 0x router, sold a small amount of externally sourced AVAIL into the same pool to extract about 1,072 WETH before paying out 1,018 ETH, worth $1.8 million, to Titan as a builder reward.

The AVAIL was then swapped for $14,200 worth of LIT tokens, marking a 99.3% loss.

Related: ‘All DeFi unsafe’ claim sparks AI security debate after April hack surge 

Cointelegraph reached out to Titan but didn’t receive an immediate response.

Titan has now made $112.6 million in revenue from its block building services this year, data from DefiLlama shows.

Titan’s biggest day this year came in March when it extracted around $34 million in arbitrage profit from a MEV bot incident on the CoW Protocol.

Monthly change in Titan’s revenue since February 2025. Source: DefiLlama

Magazine: China’s 107 Bitcoin memory thief, Bithumb CEO booked: Asia Express

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

• Transactions
• DEX
• Ethereum

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