A scammer, known as an MEV frontrunner, has exploited the airdrop event involving Kaito and Wayfinder as reported by Wu Blockchain. The scam occurred when an MEV frontrunner exploited a weakness in the Kaito and Wayfinder airdrop’s verification process. They used automated bots to intercept and alter the user transactions. With this the $PROMPT tokens where then redirected to their own addresses.
These stolen tokens were then swapped for Ethereum (ETH), which is worth $190,000. This exploit has been possible due to unverified contracts and a potential lack of checks on the message sender.
Who Flagged the Airdrop Exploit?
One of the X user @0x_ultra (first person to flag the exploit) said in one of her tweets that her tokens were stolen by the MEV bot due to which the user figured out the entire exploit.
The X user has also urged users to not claim their tokens yet. The entire concern is centering over the fact that the contracts are not verified, which is making it difficult to assess the exact nature of the issue.
However, according to the X user who alerted the entire community of this exploit, it appears that there might have been a lack of check on the message sender within the Merkle proof verification process, which potentially allowed unauthorized access or manipulation.
This situation has come forward after series of challenges faced by Kaito. In the previous airdrop, the project was criticized for its lack of transparency and fairness in token distribution. This current exploit will affect the reputation and investor confidence in the project, airdrop and the token when looking at the broader picture.
Market Reaction
The situation has also highlighted the challenges that are being faced by the users who are trying to claim the airdrop, only to find out that their tokens are being stolen by automated bots before they can even access them.
Comments like “MEV bits killing the vibe” indicate a negative impact on user experience and trust in airdrop processes. The community is also seeking the team to fix this issue and increase security measures to protect users.
Wayfinder’s Response
The Wayfinder airdrop is a part of an initiative where $PROMPT token will be distributed to users but as of now, the process has been temporarily paused as these issues were identified. TokenTable, a partner in this particular airdrop, has also made an announcement where the team informed its users that they are addressing these transaction failures and MEV-related problems.
With this pause implemented, users have been protected from further exploitation and this will ensure the integrity of the airdrop process as of now.
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