Sandwich Attacks: Are You on the Menu?

Traditional “front running” is trading of stocks or other financial assets using privileged information about an upcoming transaction that is anticipated to significantly impact its price. For example, brokers could front run trades by using insider knowledge regarding their firm’s imminent issuance of a buy or sell recommendation to clients, a move expected to influence the asset’s price. Trading on this kind of non-public information is illegal in most jurisdictions, not only because it’s unfair to other market participants but also because it degrades the integrity of financial markets and erodes investor trust. In the often “Wild West” of crypto markets, given that all too often lawmakers haven’t caught up…