Is a Sandwich Attack Considered Illegal Market Manipulation in Traditional Finance?

Yes, in traditional finance, a sandwich attack would be classified as a form of illegal market manipulation and insider trading, specifically front-running. Traditional regulations prohibit using non-public information about a client's order to trade for personal profit.

Since the crypto sandwich attack relies on exploiting public knowledge of a pending trade for profit, it aligns with the manipulative intent and is subject to regulatory scrutiny as crypto regulations mature.