Traders lose $1 million to malicious "trading bot" software

Scammers using AI-generated YouTube videos to promote supposedly profitable crypto bot software have convinced crypto users to deploy what is, in reality, malicious code that allows scammers to siphon funds from their wallets. The free software supposedly allows anyone to run MEV bots to profit from arbitrage strategy, but the obfuscated code people are encouraged to download and deploy is actually malicious.

Researchers at Sentinel Labs have estimated that more than $1 million has been drained from various wallets via these malicious contracts.