Ethereum Pectra Upgrade is Largely Benefitting Crypto Theft Gangs

Description

Ethereum’s recently introduced smart wallet feature, EIP-7702, is under scrutiny after blockchain security researchers uncovered cybercriminals’ misuse of it. Following the Pectra upgrade, several wallet providers have begun integrating EIP-7702 features.

Authors

Oluwapelumi Adejumo

Publish date

May 31, 2025

Publisher

BeInCrypto

Web URL

https://beincrypto.com/ethereum-pectra-eip-7702-crypto-crime-theft

Referenced by

Instead of moving ETH manually from each compromised wallet, attackers now authorize contracts that automatically forward any received ETH to their own addresses.

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Wintermute links Pectra update to wallet vulnerabilities

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News story

EIP-7702 temporarily allows externally owned accounts (EOAs) to operate as smart contract wallets. The upgrade enables features like transaction batching, spending limits, passkey integration, and wallet recovery—all without changing wallet addresses.

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