EIP-7702 didn’t cause Binance hack, but may have amplified losses

The Ethereum upgrade, specifically concerning EIP-7702, might have facilitated the circumvention of withdrawal protections, although security specialists contend that the theft from Binance's wallets could have occurred irrespective of this particular protocol change.

Security analysts suggest that even absent EIP-7702, malicious actors possessed the capability to empty Binance's digital asset holdings. This assessment points toward the Ethereum upgrade potentially weakening existing safety measures related to withdrawals.

This incident underscores the complex interplay between protocol evolution and security vulnerabilities within the decentralized finance ecosystem. Market participants and institutions must closely monitor how advancements in Ethereum governance interact with real-world exploits.

Earlier coverage

• Binance hack drained wallets backing customer assets, reserve data shows Oct 30
• Binance Hacker Hunts for Exit Ramps as DeFi Exchanges Pause Markets Oct 29
• Why Switzerland’s first genuine spot bitcoin ETF could soon attract overseas banks and brokers Oct 29