- EIP-7702 allows automated fund transfers from compromised wallets.
- Developers urge halt and redesign of EIP-7702.
- $9 million reported losses, damaging Ethereum security trust.
Yu Xian, founder of SlowMist, revealed on May 31 that EIP-7702’s highest users are coin theft groups, not phishing gangs. Significant impact on Ethereum wallets due to automated fund transfers using leaked keys.
The Ethereum community faces heightened security challenges from the EIP-7702 mechanism, affecting individual wallet integrations across networks. Industry calls for immediate fixes before broader adoption.
EIP-7702 Delegations Fuel Coin Thefts, 97% Misused
SlowMist’s discovery reveals that over 97% of EIP-7702 delegations direct to coin theft contracts, escalating security concerns. Yu Xian stated these gangs misuse wallet delegation features for automated fund drains from compromised Ethereum addresses.
The implications of these activities are profound, with millions in losses reported. Coin thefts span multiple networks due to EIP-7702’s delegation loopholes. Individual and aggregated wallet holders experience significant impacts without direct hits to institutional treasuries or exchanges.
“More than 97% of EIP-7702 delegations are utilized by coin stealing gangs, automating the transfer of funds from compromised wallet addresses through smart contracts taking advantage of the leaked private keys or mnemonics.” – Yu Xian, Founder, SlowMist
EIP-7702 Poses Risk to Ethereum’s Security Ecosystem
Did you know? The scale of wallet phishing jumped by 67% in 2024, with $494 million stolen, reflecting growing threats to crypto security.
Ethereum’s (ETH) current trading price is $2,519.42 with a market cap of formatNumber(304154348453, 2). Over the last 24 hours, trading volumes reached formatNumber(22677061272, 2), departing 9.73% down. Price fell by 3.86% today, following a 36.32% rise over the past month, as per CoinMarketCap data.
Coincu research shows EIP-7702 threatens Ethereum’s security ecosystem, potentially deterring institutional adoption. Community insists on protocol amendments to restore trust within the ecosystem and safeguard financial infrastructure from future heists.
Source: https://coincu.com/340845-eip-7702-coin-theft-exploit/