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Can a Centralized Exchange (CEX) Environment Be Exploited by a Sandwich Attack?

No, a true sandwich attack is impossible on a CEX due to the lack of a public mempool and the use of a private, deterministic matching engine.
Greeks.Live14.11.25

Can a Centralized Exchange (CEX) Environment Be Exploited by a Sandwich Attack?

A true sandwich attack, as defined in DeFi, cannot occur on a CEX because CEXs do not have a public mempool and use a deterministic price-time priority matching engine. The CEX controls the order flow, preventing external bots from observing and manipulating the queue.

However, a CEX insider with privileged information could theoretically replicate the effect of a sandwich attack by front-running a large client order, though this would be classified as insider trading and market manipulation.

What Is the Primary Function of a Matching Engine in a Crypto Exchange and How Can Its Design Prevent Front-Running?
What Is the Role of a Centralized Exchange’s Matching Engine in Minimizing Large Order Slippage?
What Is the Difference between a Public and a Private Mempool?
How Does an Exchange’s Matching Engine Affect the Execution Quality of a Complex Spread?

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