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no one’s talking about how this EIP-7702 upgrade turned into a $2.5 million phishing nightmare 🚨📉!
wait r we talking about eth or the next season of stranger things 🤔 what’s the play here, hodl or panic sell?!
Institutional investors encounter escalating risks post-EIP-7702 due to vulnerabilities in execution delegation, necessitating robust defense mechanisms:
1. Verify
The Ethereum Blockchain Pectra Hardfork in May 2025 introduced EIP-7702, upgrading user interactions by allowing EOAS to delegate execution rights to intelligent contracts temporarily. Despite simplifying batch transactions and gas sponsorship, it unintentionally created a $2.5 million phishing vulnerability, exploited by cybercriminals. Institutional investors face increased challenges due to technical features being used in sophisticated attacks. The EIP-7702 delegation model has been weaponized by phishing groups, leading to significant financial losses.
To mitigate risks, institutional investors should implement multilayer defense strategies:
1. Verify intelligent contracts and use whitelists
2. Utilize Multi-Signature Portfolios
3. Conduct audits of token approvals and delegations
4. Segment wallets into hot/cold for delegation compatibility
5. Employ real-time compliance fraud detection tools
Regulatory bodies have not yet addressed EIP-7702 risks, so institutions must focus on proactive compliance, including user education and utilizing EIP-7702 secured portfolios. Investors are advised to prioritize security over convenience post-EIP-7702, avoiding wide token approvals and monitoring token approvals in real-time. The DEFI ecosystem evolves rapidly, and institutions that balance innovation with vigilance stand
https://altcoin.observer/institutional-strategies-to-navigate-the-landscape-of-evolutionary-threats-to-define/
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