Altcoins News

Story: Ethereum EIP-7702 Exploit Drains $150K in Phishing Scam

By Pankaj K

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Ethereum’s latest technical upgrade, dubbed Pectra, was hailed as a major step forward for wallet usability and transaction efficiency.

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EIP-7702: From Innovation to Exploit Target

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Proposed by Ethereum co-founder Vitalik Buterin, EIP-7702 was meant to enhance wallet functionality by briefly allowing user wallets to behave like smart contracts.

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By allowing temporary delegation to smart contracts, attackers now have a new way to gain control of user wallets, particularly if private keys are exposed.

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“CrimeEnjoyor”: The Code Behind the Attacks

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The security firm Wintermute recently revealed that the overwhelming majority of wallet delegations tied to EIP-7702 are linked to a malicious smart contract nicknamed…

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Wintermute reported that 97% of EIP-7702 delegations it analyzed pointed back to variations of this one script.

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In one widely reported incident, blockchain monitoring service Scam Sniffer confirmed a loss of nearly $150,000 from a single wallet.

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Security Flaws Point to Key Mismanagement, Not Just EIP-7702

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While EIP-7702 is being scrutinized, experts emphasize that the protocol itself is not inherently flawed.

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This has prompted security firms like SlowMist to call on wallet developers to step up their game.

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Low Financial Gains for Hackers — So Far

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Despite the growing number of compromised wallets, it appears that attackers haven’t profited significantly from these EIP-7702-based exploits.

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Interestingly, the main wallets receiving stolen funds have not been actively distributing or laundering the assets.

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Ethereum’s ongoing evolution through upgrades like Pectra is a natural part of the network’s development.

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