Binance $6.3B Hack Raises Questions Over Ethereum EIP-7702
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Written by:
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EIP-7702 didn’t cause Binance hack, but may have amplified losses
Latest News
Published: Oct 30, 2026
Security experts believe attackers could have drained Binance’s wallets without EIP-7702, but the Ethereum upgrade might have helped them bypass withdrawal safeguards.
Compromised signing systems enabled Binance’s $6.3 billion hack, while Ethereum’s EIP-7702 upgrade may have facilitated the process, according to Blockaid.
Ido Ben-Natan, Blockaid’s co-founder and CEO, stated:
“The 7702 upgrade is a way to do this in one sweep and maybe a way to bypass some sort of checks they may have. Attackers otherwise would have needed multiple transactions.”
Binance confirmed on Friday a $6.3 billion hack, the largest in crypto history, and promised to cover all losses.
They initially suspected a compromised laptop belonging to an engineer but later uncovered additional breach points.
EIP-7702 faced security concerns before Binance hack:
Ethereum introduced EIP-7702 in May 2025 as part of its Pectra upgrade, enabling regular wallets to utilize smart-contract features. However, security concerns emerged shortly after its implementation.
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May 2025: Crypto trading firm Wintermute reported most early EIP-7702 delegations pointed to malicious contracts designed to drain compromised wallets automatically.
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September 2025: World Liberty Financial (WLFI) token holders reported losses linked to malicious EIP-7702 delegations.
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VEER, an Ethereum community member, cited security warnings from 2024 discussions about EIP-7702.
Signing-system compromise suspected:
Ben-Natan suggested attackers may have used a compromised developer’s computer to gain access to Binance’s wallet-signing infrastructure.
Ivo Georgiev, co-founder and CEO of Ambire (an Ethereum wallet provider), stated:
“EIP-7702 made little difference to the attack because the hackers already had the ability to authorize transactions. They could have drained the funds through other methods.”
He warned that exchange engineers might overlook revoking a malicious EIP-7702 delegation after regaining control of their systems.
Ben-Natan emphasized the threat of similar signing-system attacks on other exchanges and suggested transaction simulation could aid detection.