Crypto Theft Groups Exploit New EIP-7702 Mechanism

A new mechanism, EIP-7702, designed for automatic fund transfers within the cryptocurrency ecosystem is being actively exploited by criminal groups. Security firm SlowMist’s Cosine highlighted on X (formerly Twitter) that this mechanism is now being used by these groups instead of traditional phishing methods. This specific mechanism allows for the automated transfer of funds from wallets possessing leaked private keys or mnemonic phrases. Over 97% of EIP-7702 delegations have been granted to fraudulent contracts, indicating a significant vulnerability in this emerging system.