BRC20 Snipping Attack

Fuente: arXiv
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Autores principales: Qi, Minfeng, Wang, Qin, Li, Ningran, Chen, Shiping, Zhu, Tianqing
Formato: Preprint
Publicado: 2025
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author Qi, Minfeng
Wang, Qin
Li, Ningran
Chen, Shiping
Zhu, Tianqing
author_facet Qi, Minfeng
Wang, Qin
Li, Ningran
Chen, Shiping
Zhu, Tianqing
contents In this paper, we introduce and implement BRC20 sniping attack. Our attack manipulates the BRC20 token transfers in open markets and disrupts the fairness among bidding participants. The long-standing principle of ``highest bidder wins'' is rendered ineffective. Typically, open BRC20 token markets rely on Partially Signed Bitcoin Transactions (PSBT) to broadcast selling intents and wait for buying auctions. Our attack targets the BRC20 buying process (i.e., transfer) by injecting a front-running transaction to complete the full signature of the PSBT. At its core, the attack exploits the mempool's fee-based transaction selection mechanism to snipe the victim transaction, replicate metadata, and front-run the legesmate transaction. This attack applies to platforms using PSBT for BRC20 token transfers, including popular Bitcoin exchanges and marketplaces (e.g., Magic Eden, Unisat, Gate.io, OKX). We implemented and tested the attack on a Bitcoin testnet (regtest), validating its effectiveness through multiple experimental rounds. Results show that the attacker consistently replaces legitimate transactions by submitting higher-fee PSBTs. We have also made responsible disclosures to the mentioned exchanges.
format Preprint
id arxiv_https___arxiv_org_abs_2501_11942
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle BRC20 Snipping Attack
Qi, Minfeng
Wang, Qin
Li, Ningran
Chen, Shiping
Zhu, Tianqing
Cryptography and Security
In this paper, we introduce and implement BRC20 sniping attack. Our attack manipulates the BRC20 token transfers in open markets and disrupts the fairness among bidding participants. The long-standing principle of ``highest bidder wins'' is rendered ineffective. Typically, open BRC20 token markets rely on Partially Signed Bitcoin Transactions (PSBT) to broadcast selling intents and wait for buying auctions. Our attack targets the BRC20 buying process (i.e., transfer) by injecting a front-running transaction to complete the full signature of the PSBT. At its core, the attack exploits the mempool's fee-based transaction selection mechanism to snipe the victim transaction, replicate metadata, and front-run the legesmate transaction. This attack applies to platforms using PSBT for BRC20 token transfers, including popular Bitcoin exchanges and marketplaces (e.g., Magic Eden, Unisat, Gate.io, OKX). We implemented and tested the attack on a Bitcoin testnet (regtest), validating its effectiveness through multiple experimental rounds. Results show that the attacker consistently replaces legitimate transactions by submitting higher-fee PSBTs. We have also made responsible disclosures to the mentioned exchanges.
title BRC20 Snipping Attack
topic Cryptography and Security
url https://arxiv.org/abs/2501.11942