Ethereum News Today: Crypto Investor Loses $1M in EIP-7702 Phishing Scam

A high-profile cryptocurrency investor recently fell victim to a sophisticated phishing attack that exploited Ethereum’s EIP-7702 protocol, resulting in a loss of approximately $1 million. The attack involved the use of a malicious platform designed to mimic legitimate decentralized finance (DeFi) interfaces, such as Uniswap, and leveraged the batch transaction feature of EIP-7702 to execute multiple unauthorized transfers with a single user signature [1]. The victim’s wallet, identified partially as 0x1526...F32f, lost a range of cryptocurrencies and non-fungible tokens (NFTs) in a matter of moments, following what appeared to be a routine transaction confirmation [3].

The attack unfolded when the investor clicked on a phishing link leading to a deceptive website. Upon opening the site, a wallet signature prompt appeared, giving the impression of a standard transaction. Once the user confirmed the request, the malicious actors used EIP-7702’s batch transaction capabilities to drain the wallet’s contents without further user interaction [2]. This method bypassed the typical security measures that require individual approvals for each transaction [4].

Security experts have since highlighted the growing risks associated with such protocol-level exploits. Yu Xiang, founder of SlowMist Security, explained that the process is deceptively simple from the user’s perspective: a phishing site prompts a wallet signature, the user confirms, and the assets are drained in an instant [2]. This incident underscores the urgent need for stronger on-chain and wallet-side verification mechanisms, particularly as phishing scams become increasingly sophisticated [5].

The attack has raised alarms within the crypto community, prompting renewed discussions around the security of Ethereum’s delegation and batch transaction mechanisms. EIP-7702, which was originally designed to improve wallet efficiency by enabling multiple transactions in one signature, has now become a focal point for potential revisions to prevent unauthorized withdrawals [6]. Despite the incident’s financial impact, no official response has been issued by Ethereum’s core development team, though experts suggest that the event may accelerate proposed changes to current protocols [4].

As phishing and other cyber threats continue to evolve, the incident serves as a stark reminder of the vulnerabilities present in decentralized ecosystems. While DeFi platforms offer greater financial autonomy, they also expose users to significant risks when foundational security layers are exploited. The Ethereum community and wallet providers are now being called upon to adopt more robust validation processes and educate users on the dangers of approving suspicious transactions [7].

Source:

[1] "Crypto Investor Hit by $1.54M Loss in Phishing Scam Using EIP-7702" – CoinCentral (https://coincentral.com/crypto-investor-hit-by-1-54m-loss-in-phishing-scam-using-eip-7702/)

[2] "Crypto Investor Loses $1M in Uniswap Scam Exploiting Ethereum's EIP-7702" – CryptoSlate (https://cryptoslate.com/crypto-investor-loses-1m-in-uniswap-scam-exploiting-ethereums-eip-7702/)

[3] "PeckShieldAlert: $1M Crypto and NFTs Stolen in Phishing From Address 0x1526...F32f" – Blockchain News (https://blockchain.news/flashnews/1m-crypto-and-nfts-stolen-in-phishing-from-address-0x1526-f32f-spx-and-cult-identified)

[4] "Ethereum News Today: Crypto Investor Loses $1M in EIP-7702 Linked Phishing Scam" – AInvest (https://www.ainvest.com/news/ethereum-news-today-crypto-investor-loses-1m-eip-7702-linked-phishing-scam-2508/)

[7] "Latest News on Cybercrime" – Cointelegraph (https://cointelegraph.com/tags/cybercrime)