Crypto Theft Exploits EIP-7702 Mechanism: Unlocking New Security Risks

Recent investigations reveal that criminal groups are exploiting a vulnerability in Ethereum’s EIP-7702 protocol to steal crypto assets. This mechanism, while intended for secure asset delegation, is now being used in coordinated attacks by these illicit actors. These targeted breaches have resulted in significant losses for users as funds are drained through the EIP-7702 structure. SlowMist, collaborating with Wintermute, discovered that 97% of delegated actions exploited this vulnerability to steal user funds, highlighting a concerning pattern in organized theft.