EIP-7702 Exploit: Coin Theft Gangs Target Ethereum Upgrade

A new vulnerability in Ethereum’s EIP-7702 upgrade has been exploited by criminal gangs, resulting in significant financial losses. This mechanism allows automated fund transfers from compromised wallets, enabling attackers to drain funds without direct user interaction. 9 million dollars have been reported stolen due to this exploit, significantly impacting the security trust of the Ethereum ecosystem. The revelation comes from SlowMist founder Yu Xian who discovered that over 97% of EIP-7702 delegations are being used by coin theft gangs for automated fund transfers through smart contracts leveraging leaked private keys or mnemonics.