A notorious MEV bot known as Jared from Subway lost $15 million in a counter-exploit over the weekend, while the Bank of England softened its proposed stablecoin caps and the Wall Street Journal alleged that Polymarket staged winning bets. These three stories dominate Monday's crypto news cycle, highlighting both the risks and regulatory shifts in the space.
Jared from Subway Exploit and Legal Threats
The Jared from Subway MEV bot, which had long profited from sandwich attacks on traders, was itself drained of $15 million in WETH, USDC, and USDT. The attacker did not exploit any smart contract vulnerability but instead tricked the bot's automated logic with fake tokens and liquidity pools that mimicked profitable MEV opportunities. Once the bot granted approvals, the funds were swept away in a classic honeypot play.
On Monday morning, Jared from Subway sent an on-chain message offering a 50% white-hat bounty if the attacker returns 2,150 ETH within 48 hours. Otherwise, the bot operator threatened to pursue all legal and law enforcement remedies. The legal path is uncertain because sandwich attacks occupy a gray zone, but the attacker's use of deceptive contracts could constitute fraud. Permanent on-chain evidence and potential KYC on centralized exchanges may help identify the culprit.
UK Advances Stablecoin Regulations
The Bank of England published its long-awaited policy statement and draft Code of Practice for systemic stablecoins, admitting earlier proposals were too strict. The regulator scrapped the proposed £20,000 individual and £10 million business holding caps. Under the new rules, issuers must keep at least 30% of reserves in deposits at the Bank of England, with the rest in high-quality UK assets, and face a temporary £40 billion issuance cap per stablecoin.
Regulated UK stablecoin products could launch as early as 2027 under joint oversight. Data shows 8% of UK adults — over 4.5 million people — already hold crypto, while awareness stands at 91%. The clearer framework could translate into stronger adoption and a gradual rise in ownership over the coming years.
Polymarket Accused of Fake Betting
The Wall Street Journal reviewed 1,105 videos from creators paid through a contractor and found that none of the big "winning bets" shown were real. Creators used dummy sites resembling Polymarket to stage roughly $1.9 million in fake wagers. Some quietly added partner tags after journalists began asking questions. Polymarket has since said it will audit its promotional content.
US Senate Resumes Crypto Clarity Act Talks
Reports indicate the US Senate is resuming negotiations on the Bitcoin and Crypto Clarity Act, which has already cleared the Senate Banking Committee. The bill aims to define digital commodities versus securities, a distinction that would provide much-needed legal certainty for the industry. While today's exploits and allegations highlight ongoing risks, clearer regulation could help the space mature and attract institutional participation.