EIP-7702 Exploited as Coin Theft Surges

EIP-7702 Exploited as Coin Theft Surges

Ethereum’s EIP-7702, introduced in the Pectra upgrade , faces exploitation by coin theft groups, according to blockchain security firm SlowMist.

EIP-7702’s misuse highlights vulnerabilities in Ethereum’s new mechanism, leading to enhanced security discussions, while raising community vigilance.

EIP-7702, introduced during Ethereum’s Pectra upgrade , is now under scrutiny as malicious actors exploit its capabilities. Blockchain security firm SlowMist attributes the exploitation to sophisticated coin theft gangs, indicating major misuse of the feature.

SlowMist’s founder, Cosine, emphasizes that over 97% of EIP-7702 authorizations are for theft contracts. These developments have urgent security implications for wallet users, demanding immediate countermeasures.

The misuse of EIP-7702 affects trust in Ethereum’s ecosystem. Many users express deep concerns over rising theft incidents tied to the new mechanism, while SlowMist continues its investigation into these activities.

Key financial impacts are observed as Ethereum (ETH) and ERC-20 tokens held in compromised wallets are targeted. The situation underscores the need for robust wallet security and improved user interfaces.

Community and developer discourse highlights EIP-7702’s risks. Discussions in forums stress the urgency for better transaction transparency and more intuitive user interfaces to mitigate exploit actions.

Potential outcomes may include increased regulatory scrutiny and technological enhancements aimed at improving security protocols . Historical trends suggest wallet security could evolve to meet these challenges, backed by community efforts.

“The EIP-7702 new mechanism is actually used by the highest level coin stealing gang (not phishing gang), which facilitates the automatic transfer of relevant funds from wallet addresses that leak private keys/mnemonics… More than 97% of EIP-7702 authorizations are authorized to such coin stealing contracts.” – Cosine Lv, Founder, SlowMist