ChatGPT Arbitrage MEV Bot Scams: How They Work and How to Protect Yourself

Cybercriminals have adapted to trending topics, rebranding their fraudulent schemes under popular names like “ChatGPT.” Earlier this year, SlowMist’s founder Cos warned

Cybercriminals are adapting to the latest trends, renaming their fraudulent schemes with popular names like “ChatGPT.” Earlier this year, SlowMist’s founder Cos warned users on X about arbitrage MEV bot scams. Now, these scams have evolved.

Scammers are marketing their fake bots as “ChatGPT Arbitrage MEV Bots.” These bots promise to scan the Ethereum blockchain for arbitrage opportunities, allowing users to earn passive income. The scammers even claim the bot’s code was generated by ChatGPT, easing concerns about its legitimacy.

However, this mention of AI is merely a marketing tactic, briefly appearing in tutorial videos that contain numerous red flags, such as poor video quality and recycled footage.

Scammers are embedding MEV bot scams into tutorials, using AI buzzwords like ChatGPT to appear credible. They promise easy profits, but in reality, your funds are being funneled into scammer wallets. Learn how they operate and how to protect yourself in our latest article.…

Breaking Down the Scam

To participate in the scam, users are asked to deploy a smart contract using a code provided by the scammer, via their MetaMask wallet. This code is claimed to detect token price fluctuations on the Ethereum blockchain.

Victims are then asked to deposit Ethereum (ETH) into the contract, with promises of higher profits for larger deposits.

Once users fund the contract and click “start,” their ETH is immediately transferred to the scammer’s wallet via a hidden backdoor. Victims are essentially sending their funds directly to the scammer’s address, losing any chance of recovering the stolen ETH.

One identified scammer address, 0xAE…258122, has amassed around 30 ETH, or about $73,860, from over 100 victims. The funds are then routed through other addresses or sent directly to exchanges to further obscure the trail.

In addition to the main address, the scammers also operate multiple collection addresses, which have reportedly stolen around 20 ETH from approximately 93 victims.

Scammers often target many individuals, collecting smaller amounts, which makes it difficult for victims to pursue legal action.

Platforms like Remix have been warning users about these scams for years, with users leaving comments on scam-related articles, linking to fraudulent videos.

Despite these efforts, the scams continue to proliferate.

Staying Safe in the Crypto Space

The SlowMist security team urges users to be cautious when dealing with unfamiliar links, especially those involving AI-branded tools. Users should carefully review any code before deploying smart contracts, using tools like ChatGPT or Claude to analyze for potential malicious activity.

Scams like this one highlight the importance of vigilance in the cryptocurrency space, where seemingly easy opportunities could lead to financial loss.

The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.