The Solana Foundation has removed validators participating in sandwich attacks, which exploit pending transactions to manipulate asset prices. This move is part of Solana’s crackdown on scammers and hackers. These attackers place buy and sell orders around pending transactions, leaving retail investors with unfavorable prices. Tim Garcia announced on Discord that such malicious activities will not be tolerated, with violators facing permanent expulsion from the program.
News Explanation:
The Solana Foundation has implemented strict measures against scammers and hackers associated with the Solana (SOL) cryptocurrency. The Foundation has removed a group of validator operators from its delegation program for their involvement in sandwich attacks. In these attacks, malicious traders hunt for pending transactions on networks like Ethereum. They carry out the attack by placing a buy order before and a sell order immediately after the pending transaction, manipulating asset prices to make a profit. Retail investors are typically left with the worst prices, while the attackers make all the profits. Validators who enabled these sandwich attacks were identified through their activities in the mempool. This decision aligns with the Solana Foundation’s rules designed to prevent malicious activities. Validators found guilty will no longer be assigned any delegation tasks.
Tim Garcia, the Lead of Solana Validator Relations, announced the removal of these validators on Discord. He stated that participation in malicious activities, such as attacking transactions or harming Solana users by engaging in private mempools, will not be tolerated. Anyone discovered to be involved in such activities will be immediately expelled from the program and permanently banned from any association with the Solana Foundation.
The Solana Foundation Delegator Program was created to relieve users of the burden of holding large amounts of SOL tokens by allowing them to delegate staking rights to validators. Delegation enables users to delegate staking rights to a stake pool or validator, who is then responsible for creating blocks and verifying transactions. Validators are selected based on their performance. This action by the Solana Foundation highlights their commitment to user security. Solana is one of the cryptocurrencies with a large user base, following Bitcoin and Ethereum. Experts believe SOL has significant growth potential, comparable to Bitcoin.
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