Coinbase Loses $300,000 After 0x Contract Misconfiguration Exploited by MEV Bots

Coinbase recently lost approximately $300,000 due to an error involving the 0x Project swapper contract, which was exploited by MEV (Maximal Extractable Value) bots. The incident occurred when a corporate wallet used for internal token fees was mistakenly configured to approve tokens to a swapper contract that was never intended to handle such approvals [1]. Once the error was made, MEV bots quickly capitalized on the vulnerability, draining the affected wallet before Coinbase could intervene [2]. The affected assets were entirely internal and did not impact customer balances, as confirmed by Coinbase’s Chief Security Officer, Philip Martin [3].

The error was revealed by a security researcher known as Deebeez on social media, who explained that the swapper contract allowed arbitrary calls and effectively turned the approval mistake into an exploitable vulnerability. MEV bots from various platforms, including Amp, DEXTools, and MyOneProtocol, swiftly moved the assets [4]. The incident highlights how quickly these bots can respond to on-chain opportunities, often within seconds of a misconfiguration being posted [5].

Coinbase acted swiftly to revoke the faulty permissions and transferred the remaining assets to a secure wallet. The company has also announced internal reviews to strengthen its smart contract configurations and enhance operational security protocols [6]. While the loss is relatively small in the context of Coinbase’s overall financial position, it underscores broader risks in the DeFi space, particularly regarding the use of permissionless contracts and the speed at which automated exploitation can occur [7].

Experts have emphasized the importance of isolating corporate wallets and implementing strict limits on token approvals, alongside rapid revocation mechanisms to prevent similar incidents. The case is a reminder of the systemic challenges in securing decentralized finance infrastructure and the need for continuous monitoring and auditing of smart contract interactions [1].

Source: [1] Cointelegraph – [https://cointelegraph.com/news/coinbase-0x-contract-error-mev-bot-300k-loss](https://cointelegraph.com/news/coinbase-0x-contract-error-mev-bot-300k-loss)

[2] CoinDesk – [https://www.coindesk.com/markets/2025/08/14/coinbase-loses-usd300k-in-mev-exploit-after-misstep-with-0x-swapper-contract](https://www.coindesk.com/markets/2025/08/14/coinbase-loses-usd300k-in-mev-exploit-after-misstep-with-0x-swapper-contract)

[3] CCN.com – [https://www.ccn.com/news/crypto/mev-bots-drain-300k-coinbase-wallet/](https://www.ccn.com/news/crypto/mev-bots-drain-300k-coinbase-wallet/)

[4] CoinCentral – [https://coincentral.com/coinbase-suffers-300000-loss-due-to-misconfigured-0x-swapper-contract/](https://coincentral.com/coinbase-suffers-300000-loss-due-to-misconfigured-0x-swapper-contract/)

[5] AInvest – [https://www.ainvest.com/news/coinbase-loses-300-000-misconfigured-0x-swapper-contract-mev-exploit-2508/](https://www.ainvest.com/news/coinbase-loses-300-000-misconfigured-0x-swapper-contract-mev-exploit-2508/)

[6] CryptoSlate – [https://cryptoslate.com/coinbase-loses-300k-to-rogue-mev-bots-after-token-swap-blunder/](https://cryptoslate.com/coinbase-loses-300k-to-rogue-mev-bots-after-token-swap-blunder/)

[7] Traders – [https://tradersunion.com/news/cryptocurrency-news/show/436159-coinbase-error-triggers-300k-exploit/](https://tradersunion.com/news/cryptocurrency-news/show/436159-coinbase-error-triggers-300k-exploit/)