In a troubling incident within the cryptocurrency landscape, a crypto investor has lost nearly $1 million due to a scam exploiting Ethereum’s EIP-7702 feature. This security breach highlights the growing risks associated with decentralized finance platforms like Uniswap, particularly as malicious actors become more adept at leveraging advanced blockchain functionalities.
According to a report from blockchain security firm Scam Sniffer, a single phishing attack successfully drained the investor’s assets by tricking them into signing a series of malicious transactions that were disguised as legitimate Uniswap swaps. On August 22, 2025, Yu Xiang, founder of the blockchain security firm SlowMist, detailed the incident on X, explaining that the attack involved five different tokens that were siphoned away through the new EIP-7702 mechanism.
“From the perspective of a phished user, it goes like this: the user opens a phishing website, a wallet signature prompt pops up, the user clicks confirm, and with just that one action, all valuable assets in the wallet address vanish in a snap,”
Xiang elaborated, emphasizing the ease with which attackers can exploit unsuspecting users. The EIP-7702 feature, introduced in the Pectra upgrade, was designed to enhance the Ethereum user experience by allowing a wallet to function like a temporary smart contract. This enables batch processing of multiple transactions, gas sponsorship, and the ability to set spending limits in a single step. However, this functionality has also presented new vulnerabilities that attackers can manipulate.
Recent analyses conducted by Wintermute, a prominent crypto market maker, have revealed alarming statistics: over 90% of EIP-7702 delegations are now associated with malicious contracts. These contracts often utilize simple copy-paste scripts to identify vulnerable wallets and drain assets automatically. The scale of this exploitation has raised significant concerns within the crypto community.
In light of these developments, both Scam Sniffer and Xiang have urged crypto users to exercise caution when signing wallet requests. They recommend taking several preventive measures:
- Verify domain names before interacting with any platform.
- Avoid hurried confirmations that may lead to mistakes.
- Reject signatures that appear vague or overly broad.
Additionally, users should be vigilant for red flags, including requests for unlimited token approvals, contract upgrades under EIP-7702, or transaction simulations that do not align with user expectations.
As the cryptocurrency market continues to evolve, the importance of security measures cannot be overstated. The increasing prevalence of sophisticated scams like this one serves as a stark reminder for investors to remain vigilant and informed. Cryptocurrency trading is inherently risky, and individuals should conduct thorough due diligence before engaging in any transactions.
For ongoing updates and insights into the crypto market, consider following reputable news sources dedicated to financial journalism. As companies increasingly hold significant amounts of Bitcoin—over 5% of its total supply—the stakes in the cryptocurrency market only continue to rise.
In summary, the recent incident involving a $1 million loss serves as a critical warning about the potential dangers of the evolving crypto landscape. By remaining cautious and informed, investors can better protect themselves against the increasingly sophisticated tactics employed by malicious actors.
For more information on this topic, you can reference the original article from CryptoSlate.
