Tether Blacklists Address After $25M MEV Exploit

Tether, the issuer behind the leading stablecoin USDT has blacklisted an address that drained MEV bots for $25 million using a sandwich trade exploit. The move has received pushback from the community, with some calling it censorship and a bad precedent. MEV bots take advantage of traders by front-running their trades, and some believe that Tether's action sets a concerning precedent for blocking or unblocking addresses based on activity in the consensus layer. MEV, or Maximal Extractable Value, is a controversial practice in the cryptocurrency space that is seen as a form of invisible tax on traders. Recently, 27 Ethereum-based projects have joined forces to launch MEV Blocker to minimize the amount of value extracted from traders.