Concerns are mounting within the cryptocurrency community as malicious actors exploit a vulnerability in the EIP-7702 protocol, leading to significant financial losses and raising questions about the security of Ethereum accounts. Blockchain expert Yu Xian revealed on X that coin theft gangs have been targeting users using this protocol for automated transactions. These gangs utilize leaked credentials and private keys to steal funds from unsuspecting wallets, resulting in reported losses of nearly $9 million. The vulnerability allows malicious actors to automate fund transfers from compromised wallets through smart contracts. This presents a new threat vector in the Ethereum ecosystem, prompting a call for urgent action within the developer community. Ethereum developers are exploring potential redesign options and suspension strategies to mitigate this security risk. Market reactions have been swift, with security firms advising users to avoid using EIP-7702 delegation features until fixes are implemented. This proactive approach aims to prevent further exploitation of the protocol and protect users from financial harm. Security experts like SlowMist advise delaying the implementation of EIP-7702 until significant improvements are made. The potential for larger-scale attacks has prompted concerns about regulatory responses, emphasizing the need for tighter security protocols in the future.