Ethereum Update Linked to $6.3 Billion Binance Hack

Binance suffered an attack resulting in $6.3 billion in losses. Investigators suggest that the Ethereum EIP-7702 update may have facilitated the theft. The feature allowed attackers to perform a rapid sweep of assets instead of executing multiple transactions.

Security experts at Blockaid report that the exchange's signature system was compromised. Attackers allegedly accessed the signature infrastructure through a developer's computer. This enabled the execution of transactions that should have been blocked by internal protocols.

EIP-7702 was implemented in May 2025 to bring smart contract functions to standard wallets. Since its launch, warnings regarding the malicious use of the tool have been recorded in other incidents. The feature acted as a clearing tool for the attackers during the withdrawal process.

Binance confirmed the incident and promised to fully cover user losses. The company continues to investigate new points of failure discovered after the initial analysis. CEO Richard Teng stated that there is no evidence of a direct leak of private wallet keys.

The use of account abstraction technologies on blockchain networks expands the attack surface when governance systems are breached. Vulnerabilities in centralized custody infrastructure increase systemic risk for the crypto market and may pressure liquidity during periods of high volatility.