Crypto
Researchers uncover vulnerabilities leading to predatory trading in popular Ethereum cryptocurrency rollups
Ethereum, a decentralized online platform that allows users to conduct financial transactions in Ether cryptocurrency, prides itself on the system’s high security.
But new findings from Northeastern University’s computer scientists and researchers at ETH Zurich, a public research university in Switzerland, show that it might not be so bulletproof, and its users might be susceptible to some market participants’ predatory practices.
“There are direct monetary incentives,” says Ben Weintraub, a Northeastern doctoral student in the Khoury College of Computer Sciences. “So in my view, it’s better if researchers find and publicize it first before people mistakenly lose money.”
Weintraub presented the paper on the findings at the Association for Computing Machinery’s annual Conference on Computer and Communications Security (ACM CCS 2024) held Oct. 14–18 in Salt Lake City. The study is available on the arXiv preprint server.
He and his co-authors conducted a large-scale analysis of exploitative trading activities on Ethereum itself and across so-called rollups, or off-the-platform services that allow faster processing of higher volumes of transactions.
The researchers found evidence that certain actors can manipulate the market on rollups, which was previously thought to be impossible.
“It was known to be possible on regular Ethereum, but it was thought to be impossible on rollups and we showed that it is not impossible,” Weintraub says.
The paper presents three novel types of attacks in which predatory traders could have made about $2 million in profits in the last three years by manipulating transactions within Ethereum trading networks.
Ethereum is a network of independent computers across the world that follows the Ethereum protocol—a set of rules on how the computers in the global network can interact with each other. It uses blockchain technology, pioneered by Bitcoin.
A blockchain is a database of transactions that is shared across computers in a network. Once a new block, or a new set of transactions, is added to the blockchain, that data can no longer be removed by anybody, primarily due to cryptographic techniques that highlight any attempts at tampering.
Anyone can create an Ethereum account from anywhere, at any time. No central authority such as a government or a company has control over Ethereum, which means no individual can change the rules or restrict users’ access. Any Ethereum protocol changes require approval from more than half of the network.
Unlike Bitcoin, which is solely a payment system with a name-sake cryptocurrency, Ethereum allows users to build applications, communities and organizations on its platform.
The Ethereum network, however, has a scalability problem—as the number of people using it has grown, the blockchain has reached certain throughput limitations that further inflated the costs for conducting transactions on the platform.
One solution are the rollups, such as Arbitrum, Optimism and zkSync—which were analyzed by Weintraub—that aim to improve Ethereum’s speed by taking batches of transactions and calculations off Ethereum. This reduced the processing cost of a transaction to roughly 1 cent, Weintraub says.
Some actors make profits trading cryptocurrencies by trying to achieve maximal extractable value, he says, by manipulating the order of transactions that are pending inclusion on the blockchain. The research provides exclusive insights into the volume of maximal extractable value transactions on rollups, costs associated with them, profits made by such exploitative traders, competition between them and response time to such activities across Ethereum and the rollups.
Some methods that malicious actors use are common to financial markets, like arbitrage, when a user buys something on one exchange and quickly sells it for profit on another exchange.
“It’s generally thought to be a good thing because it keeps different exchanges balanced in terms of price,” Weintraub says. “But there are also types [of maximal extractable value] that are not good. One that’s fairly well-known in research is called sandwiching.”
In sandwiching, when a speculator sees someone is about to buy an asset, they buy it first, driving up the price. The speculator then quickly sells it at the higher price.
Sandwiching is considered a “bad,” manipulative trading strategy affecting the price that other traders get. On Ethereum, block producers—people or groups who get paid when their hardware is randomly selected to verify a block’s transactions—can try to maximize the amount of profit they make by manipulating how transactions are ordered or included in a block before it is added to the blockchain.
“The reason we call this an attack is because it is purely damaging to that victim, who now has to pay a little bit more for their transaction,” Weintraub says. “The system broadly does not benefit at all. There’s just the one who profits—the ‘sandwicher.’”
While the researchers didn’t find traditional sandwich attacks on popular rollups, they identified three potential strategies for them when transactions move between Ethereum and rollups with a time delay.
“This just came from analyzing the protocol and looking at the exact flow of transactions—when they get sent, when the rollup seems to respond to them or when they end up on the blockchain,” Weintraub says.
“We tested our attacks on [Ethereum’s] test-net, a network of ‘fake’ money that is used by developers to test their applications,” he says. “And, essentially, we stole all of the money from only ourselves.”
Weintraub is currently in contact with major rollups’ developers to see what can be done about the possibility of the attacks. Two types of these novel attacks can be prevented, Weintraub says, while it is unclear how to protect users from the third type.
“Our view is that it’s better to just get this information out there so people, at least, are aware of the risks,” he says.
More information:
Christof Ferreira Torres et al, Rolling in the Shadows: Analyzing the Extraction of MEV Across Layer-2 Rollups, arXiv (2024). DOI: 10.48550/arxiv.2405.00138
arXiv
Northeastern University
This story is republished courtesy of Northeastern Global News news.northeastern.edu.
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Crypto
Trust Wallet Adds AI Transaction Layer to Self-Custody Wallet Infrastructure
Trust Wallet Agent Kit: AI Can Now Act on Your Crypto — With Your Permission
The kit ships in two configurations. In the first, developers set up a dedicated wallet built specifically for AI agent activity, where users define permissions upfront, and the agent can run automated strategies like dollar-cost averaging, limit orders, and price alerts, without asking for approval on every transaction.
In the second configuration, an AI agent connects to a user’s existing Trust Wallet through Walletconnect, proposes transactions, and waits for the user to approve them before anything moves. The firm notes that the user’s custody stays intact throughout.
The release follows Trust Wallet’s Developer Portal, which opened last week with read-only access to crypto data across more than 100 blockchains, including live prices, token metadata, and onchain risk signals. The Agent Kit extends that foundation by adding the ability to act, not just observe.
At launch, supported networks include Ethereum-compatible chains, Solana, Bitcoin, BNB Chain, Cosmos, TON, Aptos, Tron, NEAR, and Sui. Trust Wallet says that coverage makes it the broadest chain-compatible AI wallet infrastructure currently available.
The kit integrates with Model Context Protocol (MCP), the standard developers use to connect AI systems to external platforms, and is available through a command line interface. According to the company’s announcement, a developer can go from account creation to a working AI agent in under 15 minutes.
Out-of-the-box features include token swaps, limit orders, automated strategies, ENS resolution, ERC-20 approvals, message signing, portfolio tracking, wallet auto-lock, and a REST API for deeper integrations.
Felix Fan, CEO of Trust Wallet, remarked in a statement that AI agents need a trusted layer before they can safely act on a user’s finances. The Agent Kit, he said, gives developers the tools to build agents that execute on real wallets within rules the user sets.
Trust Wallet, which reports more than 220 million downloads, describes its broader goal as becoming the self-custody infrastructure for AI-powered finance, a foundational layer that lets AI participate in crypto workflows without users surrendering ownership of their assets.
The company plans to bring AI features directly to end users inside the Trust Wallet app over the coming months, with in-wallet insights, automated strategies, and personalized alerts. A separate Agent Marketplace is also on the roadmap, where developers can publish reusable agent strategies and trading bots for users to deploy directly from their wallets.
Trust Wallet’s development arrives as a growing number of crypto firms roll out services and features tailored to the emerging agentic economy. Since the debut of Openclaw, interest in AI agents has accelerated profoundly, with companies such as Circle, Binance, Coinbase, and a myriad of others unveiling tools and infrastructure focused squarely on this evolving segment.
FAQ 🔎
- What is the Trust Wallet Agent Kit? It is a developer tool that allows AI agents to execute real crypto transactions on a user’s wallet across more than 25 supported blockchains.
- How does Trust Wallet keep users in control of AI transactions? Users can require per-transaction approval through WalletConnect or configure preset permissions on a dedicated agent wallet before any automation runs.
- What blockchains does the Trust Wallet Agent Kit support? At launch it supports Ethereum-compatible chains, Bitcoin, Solana, BNB Chain, Cosmos, TON, Aptos, Tron, NEAR, and Sui.
- Where can developers access the Trust Wallet Agent Kit? The kit is available now via the Trust Wallet Developer Portal at portal.trustwallet.com.
Crypto
Cedar Falls delays public hearing on crypto mining operation, power plant
CEDAR FALLS, Iowa (KCRG) – Cedar Falls city officials postponed a public hearing on zoning and code changes needed for a proposed power plant and cryptocurrency mining operation.
The hearing was pushed back to April 22 amid concerns from residents about environmental impacts and utility costs.
Cedar Falls Utility and Simple Mining, the company behind the cryptocurrency operation, say their projects will not negatively impact the public or the environment. Residents at Tuesday night’s meeting showed skepticism about those claims.
People are concerned about noise levels and water and electricity usage. Simple Mining says its crypto mining will use a closed loop water cooling system, which will allow the operation to use very little water. The company also says it can be shut down quickly when energy rates are higher.
Matt Hein, Simple Mining Director of Energy Infrastructure, said the company’s energy usage is a benefit to Cedar Falls.
“Our large consumption of electricity is an economic benefit to the city of Cedar Falls,” Hein said. “We help pay for schools, we help pay for roads.”
People worry high energy usage will push their utility bills up.
Cedar Falls Utility says the power plant was planned for years before the crypto operation became part of the picture.
Copyright 2026 KCRG. All rights reserved.
Crypto
US 10-Year Treasury Yield Hits 8-Month High Above 4.4%, Pulls Back on Middle East Ceasefire Reports
Bond Market Selloff Pushes 10-Year Yield
The move reflected a sharp repricing of inflation and fiscal risk. Bond prices fell as investors demanded higher returns on longer-dated government debt, pushing the 10-year yield to close at approximately 4.39% on Tuesday, according to data tracked by Ycharts and the St. Louis Fed’s FRED database.
Three overlapping pressures drove the climb. The ongoing U.S.-Iran conflict — including airstrikes and troop deployments, raised fears of oil supply disruptions near the Strait of Hormuz. Crude prices spiked, embedding higher energy costs into inflation expectations and pulling bond prices lower, particularly at the long end of the curve.
Fiscal concerns compounded the move. Increased military spending added to already elevated deficit projections, deepening term-premium pressure on Treasuries. Weak recent bond auctions further signaled reduced demand from investors, questioning long-term fiscal sustainability.
The Federal Reserve provided no offset. At its March 18 meeting, the Fed held the federal funds rate steady at 3.50%–3.75% in an 11-1 vote, citing sticky inflation, solid economic activity, and uncertainty tied to the Iran conflict. The Fed’s dot plot still projected one rate cut in 2026, but futures markets largely priced out meaningful easing this year — with some traders pushing rate-cut expectations into 2027.
That hawkish stance steepened the yield curve. Short-term rates stayed anchored while long-end yields rose on persistent inflation bets — a classic “higher for longer” repricing that forced an unwind of leveraged bond positions.
Jurrien Timmer, Director of Global Macro at Fidelity Investments, flagged the technical significance of the move. “While the 10-year yield broke out of a short-term range, the weekly chart still shows bonds holding within a long triangle in place since 2022,” Timmer wrote Wednesday. “If it breaks, it will be a problem not only for bonds but equities and other assets as well.” He added that yields are rising globally: “This is a global reset.”
Keith McCullough, CEO of Hedgeye Risk Management, pointed to the trend’s staying power. “10-Year Yield Holds Uptrend as Inflation Nowcast Accelerates during Quad3,” McCullough posted Wednesday. “The bond market isn’t buying the narrative. 10Y still making higher highs and lows. Range: 4.20–4.43%.”
Wednesday’s partial reversal showed how sensitive yields remain to geopolitical headlines. As ceasefire reports circulated, the 10-year traded near 4.32%–4.33%, giving back a portion of the prior day’s advance.
Timmer’s earlier note captured the line markets are watching: “Nothing good happens above 4.5% when the risk-free rate is competitive with risky assets.” That level sits roughly 17 basis points above Tuesday’s close.
Whether yields resume their climb depends on two variables: sustained inflation data and any re-escalation in the Middle East. Markets are positioned for both. For now, the 10-year yield remains a live stress indicator, not just for bonds, but for equities, credit, and rate-sensitive sectors across the U.S. economy.
FAQ 🔎
- Why did the 10-year Treasury yield rise above 4.4% in March 2026? The yield climbed due to overlapping pressures from U.S.-Iran conflict oil fears, elevated federal deficit spending, and a Federal Reserve holding rates steady with few cuts expected in 2026.
- What does a higher 10-year Treasury yield mean for the U.S. economy? Rising long-term yields increase borrowing costs for mortgages, corporate debt, and government financing, putting pressure on equities and rate-sensitive sectors.
- When did the 10-year yield last trade this high? The March 24, 2026 close near 4.39% marked the highest level in approximately eight months, dating back to around July 2025.
- Will U.S. Treasury yields continue rising in 2026? Analysts say the path depends on incoming inflation data and whether the Middle East conflict escalates further or moves toward a sustained ceasefire.
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