EIP-7702 Not Root Cause of $100M Binance Hack, But May Have Amplified Losses, Experts Say

Security experts analyzing the recent $100 million hack of Binance's Ethereum hot wallet have concluded that the Ethereum Improvement Proposal 7702 (EIP-7702) was not the root cause of the breach, but may have inadvertently amplified the losses by allowing attackers to bypass certain withdrawal safeguards. The attack, which exploited a compromised multisig wallet, drained funds despite existing security measures. While the vulnerability existed independently of EIP-7702, the upgrade's new transaction type—which lets externally owned accounts temporarily execute smart contract code—may have enabled the attackers to circumvent additional checks designed to prevent large unauthorized transfers. This has sparked debate within the Ethereum community about the trade-offs between flexibility and security. The incident underscores the growing sophistication of crypto heists and the need for exchanges to continuously reassess their security architecture in light of protocol upgrades. As Ethereum evolves, the balance between innovation and asset protection remains a critical challenge for the industry.