Basically the attacker created a bunch of “fake wrapper” that mint-wrapped real tokens like WETH/USDC/USDT. Jared was boiled like a frog. Juicy arbitrages on real pools with the fake wrappers. Jared started small to test the waters, made money, things looked safe, then scaled up

🚨Community Alert: Blockaid Exploit Detection system detected an exploit involving the @jaredsmev MEV bot on Ethereum. The incident resulted from attacker-controlled contracts tricking an automated MEV execution system into granting token approvals, later used to drain funds. 7.5M$ drained. Exploit tx: https://etherscan.io/tx/0x2be8704f5a59b6… More details in🧵

Ethereum made a bet in 2020: rollups would scale it. The bet worked technically. Dozens of L2s launched. Billions in TVL. Transaction throughput expanded by orders of magnitude. But something happened alongside the scaling that nobody planned for. The rollups that were supposed to extend Ethereum started pulling away from it. Sequencing value started flowing instead to private operators. Governance, which was supposed to mirror Ethereum's credible neutrality, became foundation-led and upgrade-key-dependent. The top L2s on L2beat carry "funds can be stolen" warnings. 99% of L2 economic activity chooses not to use Ethereum for sequencing. The relationship between Ethereum and its rollups is weakening. This is the problem. Not a technical problem. A structural one. Ethereum did not just fragment — it began to lose the economic ground it had already won. The conventional response is more interop. Better bridges. Cross-chain messaging protocols. These responses accept fragmentation as a given and try to patch over it. They don't answer the question underneath: what kind of thing is Ethereum becoming? If Ethereum is just a settlement layer that rollups happen to use, then the fragmentation is natural and the patching is all you can do. You build better bridges between separate islands. But if Ethereum is something else — if it can be the environment those rollups run in, not just the settlement layer they occasionally touch — then fragmentation isn't the problem to solve. It's the wrong frame entirely. Ethereum stops being a single chain. It becomes an economic operating system. An operating system doesn't compete with its applications. It governs the environment they run in. The applications are diverse, specialized, optimized for different things. The OS provides the common ground: the governance, the security model, the credible neutrality that makes everything built on it trustworthy. If Ethereum is an economic OS, then zones — each optimized differently — don't fragment it. They extend it. Nation-state compliance, security-first, low-latency, consortium coordination: individually useful, together transformative. The composability between them isn't bridged. It's native. Atomic. Settled by Ethereum in the same transaction. This is not a metaphor for convenience. It is a precise architectural design about what @etheconomiczone are and how they work.

Support for opensource, privacy, sovereignty and censorship resistance is something really nice to see in the ethereum ecosystem. But please listen to someone who has created a company and a product around those values, has kept it going for 8+ years and has paid the consequences of building something that adheres to these values. Learn from my mistakes. I fear the way you are advertising these values, you are not reaching anybody new. You are preaching to the choir. The way I see you bang the drum for these values is only going to appeal to the people who are already strong believers in them. I don't see anyone trying to think of how to bring new people in and introduce them to these concepts, explain why they are good and incentivize them to use them. Incentives rule everything around us. "I will build cool things on Ethereum, the blessed world computer, or die trying" does not bring in new people. It makes us sound like a cult. It's offputting. Instead I want to see successful apps on and around ethereum using the right CROPS values and still succeeding in bringing in new people, incentivizing users and monetizing successfully so we can have a sustainable ecosystem. I want to see us mentor new people towards achieving them and creating such companies. I want to see you all thrive while building opensource apps. Not struggle for 2-3 years, burn out and leave and then be replaced by new zealots for our cult. It pains me to see people burn out by listening to well intended but otherwise completely dangerous advice on how to build products. And yes that will mean some compromises on the way because in the end that's the real world. And you are building apps for other people not only for yourself in your ivory tower. I will help and assist everyone who wants to build opensource, sovereign apps, privacy apps, CROPS or whatever cool kids call them nowadays as long as they are actually solving real problems and trying to get new users in. I want to see ethereum win. And I will do anything I can to see this come to fruition.