Ethereum's recent hard fork, Pectra, which introduced EIP-7702, has generated significant security concerns within the developer and trading communities. The feature, aimed at enhancing wallet functionality by allowing externally owned accounts to temporarily behave like smart contracts, enables batch transactions, alternative gas fee payments, and social authentication.
However, Wintermute, a well-known crypto trading firm, has warned that attackers are abusing this capability. Malicious entities exploit EIP-7702 by reusing a simple smart contract dubbed "CrimeEnjoyor" to drain wallets with leaked private keys, transferring assets to attacker-controlled addresses. This activity reportedly composes over 80% of EIP-7702 delegations, posing a significant risk to user funds.
Additional security alerts have come from blockchain security firms such as Scam Sniffer and SlowMist, highlighting malicious transactions linked to longstanding scams like Inferno Drainer which resulted in around $150,000 of losses.
Ethereum developers are urging the integration of enhanced security mechanisms and cautious adoption of EIP-7702 to maintain network stability and user asset protection. Though no confirmed exploits directly attributable to EIP-7702 have been publicly verified, the scrutiny reflects heightened concern after past upgrade challenges like the Merge.
Ethereum co-founder Vitalik Buterin emphasized that EIP-7702 improves upon earlier proposals by maintaining compatibility with standards such as ERC-4337 and providing a clear upgrade path for smart account functionality. The Ethereum community and stakeholders remain focused on balancing innovation with robust security and regulatory compliance.