QUADRIGA INITIATIVE
CRYPTO WATCHDOG & FRAUD RECOVERY PLATFORM
A COMMUNITY-BASED, NOT-FOR-PROFIT
UNKNOWN
OCTOBER 2025
GLOBAL
GMGN.AI
DESCRIPTION OF EVENTS
GMGN.ai is a comprehensive platform designed for traders who specialize in meme token markets, providing tools for real-time tracking, trading, and analyzing tokens across various blockchain networks like Ethereum, Solana, and Base. The platform is built around the concept of "smart money," monitoring wallet movements from sophisticated addresses and token flows, allowing traders to react quickly to market trends. One of GMGN.ai's standout features is its on-chain sniping tool, enabling users to track and trade tokens directly on supported blockchain networks. This, combined with the platform's cross-chain swap functionality, ensures efficient transactions and the ability to move tokens between different networks at reduced costs. For those looking for deeper insights, GMGN.ai integrates advanced technical analysis tools like TradingView’s RSI and MACD indicators, further enhancing decision-making.
Key Features and Advantages GMGN.ai excels in providing advanced trading capabilities, such as automated trading, copy trading, and anti-MEV (Miner Extractable Value) protection. Copy trading allows users to replicate the strategies of successful traders, making it an attractive feature for beginners. The platform also features real-time signal notifications, tracking over 100 investment opportunities daily, which is crucial in the fast-paced meme token market. Additionally, GMGN.ai offers a robust set of security features, including insider risk detection, preventing traders from falling victim to rug pulls or scams. The platform’s ability to track smart wallet movements provides users with actionable data on emerging market trends, which can be a game-changer for meme coin investors. GMGN.ai’s efficient and fast analysis helps users navigate volatile markets with greater confidence, minimizing risk while maximizing potential returns.
User Experience and Potential Drawbacks While GMGN.ai offers powerful tools, it does have some areas that could be improved. For one, its focus is currently limited to Solana and Base blockchains, which could alienate traders interested in tokens on other networks. However, its integration with the Solana ecosystem is robust, offering a specialized environment for meme coin trading. The platform’s interface is intuitive, though new users may experience a learning curve in mastering its full set of features. Despite these minor drawbacks, GMGN.ai’s advanced risk assessment capabilities, detailed analytics, and unique focus on meme token trends make it a compelling choice for traders seeking an edge in the cryptocurrency market. It stands out against competitors like DexTools and DexScreener with its combination of automated trading, deep analytics, and real-time data, positioning itself as a valuable asset for both novice and experienced traders in the meme coin space.
Unfortunately, the GMGN.ai platform had a vulnerability to sandwich bot arbitrage.
A MEV (Miner/Maximal Extractable Value) sandwich attack is a frontrunning/backrunning pattern that extracts value from a victim’s on‑chain trade. An attacker watches the public pool of pending transactions, sees a large swap that will move a token’s price, then places one transaction before the victim (the “front”), lets the victim’s transaction execute and move the price, and finally places another transaction after the victim (the “back”). The attacker’s pair of trades “sandwich” the victim’s trade, capturing the price movement caused by the victim and leaving the victim with worse execution and higher effective costs.
Mechanically, the attacker’s front transaction increases demand (or reduces supply) for the token so the price moves in the direction of the victim’s intended trade; after the victim’s swap pushes the price further, the attacker’s back transaction reverses the front position at the new, less favorable price for the victim but profitable for the attacker. Because mempools are public on many blockchains and block builders/validators decide transaction ordering, attackers (or sophisticated block builders) can prioritize their sandwich transactions to be included immediately before and after the victim’s transaction. The core idea is profiting from the predictable price impact of a large, visible order rather than from trading skill or long‑term investment.
A simplified numeric example helps show the concept without operational detail: imagine a token priced at $1.00. A large pending buy from a user would push the price to $1.20 if executed. An attacker who can buy some amount before the user’s trade and then sell those tokens after the user’s trade captures part of that $0.20 per token spread as profit; the victim ends up paying a higher average price and receiving fewer tokens for the same outlay. This illustration is purely explanatory — it does not describe how to perform such attacks and omits implementation specifics like gas manipulation or exact ordering techniques.
Sandwich attacks are harmful because they extract value from ordinary traders, increase effective transaction costs, and reduce market fairness and efficiency. Defenses include user‑level precautions (using limit orders or exchanges that protect against slippage, avoiding overly permissive slippage settings, or submitting transactions through private relays) and protocol‑level changes (batching orders, changing execution models, or deploying fair‑ordering mechanisms and MEV‑mitigation schemes). Improving wallet UX to surface risks, educating users about slippage and order types, and evolving block‑building economics can all reduce the prevalence and impact of sandwich attacks.
Total losses were not reported.
The GMGN.ai team notified users that reimbursements were in progress. Shortly afterward, the co-founder reported that all reimbursements had been completed.
All users were fully compensated for any losses related to the MEV sandwich attacks. The GMGN.ai team added an Exact pricing mode which further limits the slippage on trading orders through the platform.
The GMGN.ai team reportedly made all users whole and provided funds directly into their wallets on the blockchain.
It is unclear if any investigation was undertaken into the MEV bot owners, or any attempt to recover funds which were profited through the attacks.
The possibility of future MEV attacks is always present. MEV bots can continue to evolve and come up with more creative ways to circumvent any detection measures.
GMGN.ai is a comprehensive trading platform focused on meme tokens, offering real-time tracking, smart money monitoring, on-chain sniping, and cross-chain swap capabilities across blockchains like Ethereum, Solana, and Base. GMGN.ai experienced an issue with MEV sandwich attacks, where malicious bots exploited the platform by front-running and back-running users’ trades to profit from the price movements caused by those trades. This resulted in affected users paying higher prices and receiving fewer tokens. In response, the GMGN.ai team quickly notified users and reimbursed all losses. They also introduced an "Exact pricing mode" to limit slippage and reduce the risk of similar attacks in the future. However, it remains unclear whether any investigation into the bot operators was conducted or if the profits from the attacks were recovered.
haze0x - "48 hours ago, we were targeted by a MEV attack, which affected 729 transactions. You dont need to take any action we have calculated your losses and already completed the compensation to your wallet as of yesterday." - Twitter/X (Oct 27)
gmgnai - "Affected users do not need to take any action. The reimbursed funds will be automatically credited to your wallets within the next few hours. Please check your balance later. Thank you for your patience and continued support." - Twitter/X (Oct 27)
gmgnai - "GMGN Update - EXACT Mode for Limit Order - Smartly applies minimal slippage (even zero slippage) for limit orders, ensuring more precise execution price" - Twitter/X (Oct 27)
GMGN.Ai reimburses users after MEV exploit hits 729 transactions - MiTrade (Oct 27)
https://gmgn.ai/ (Dec 20)
GMGN.ai Documentation (Oct 27)
What is GMGN ai: Definition, How it Works and Features - BitTime (Oct 27)
GMGN Platform Review - BitBond (Oct 27)
GMGN.ai is better than Dexscreener and co. (Personal preference Shilling) - Reddit Solana (Oct 27)
BlackhatEmpire - "Listen up, degens. I've been trading memecoins on Solana since the early days of Bonk, and I can tell you straight up - the game has completely changed. If you're still using DexScreener alone or fumbling through Telegram trying to catch pumps manually, you're literally leaving money on the table. Today, I'm going to break down exactly how I use GMGN.ai combined with Blackhat Empire alerts to consistently find 10x-100x plays while avoiding rugs." - Twitter/X (Oct 27)
