Trump’s Crypto Project WLFI Under Attack as Ethereum Upgrade
0Donald Trump
Ethereum
World Liberty Financial
Trump's crypto project under attack as Ethereum upgrade backfires with hackers exploiting EIP-7702 vulnerability to steal World Liberty Financial tokens.
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Anas Hassan
Crypto Journalist
Anas Hassan
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Anas is a crypto native journalist and SEO writer with over five years of writing experience covering blockchain, crypto, DeFi, and emerging tech.
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4 hours ago
Hackers are systematically exploiting Ethereum’s EIP-7702 upgrade to steal World Liberty Financial tokens from Donald Trump’s crypto project, according to SlowMist security researchers.
The attacks leverage a vulnerability in the May Pectra upgrade that allows externally owned accounts to delegate control to smart contracts, enabling attackers to plant malicious code that instantly drains all incoming ETH and tokens.
World Liberty Financial Becomes Latest Victim of Ethereum Exploit.
According to SlowMist, multiple WLFI token holders have lost their assets after hackers combined private key theft with malicious delegate contract deployment.
The exploit technique has matured rapidly since Ethereum’s Pectra upgrade launched May 7, with over 97% of EIP-7702 delegations linked to identical wallet-draining contracts designed to automatically sweep funds.
Security firm SlowMist warned that victims whose private keys are compromised face complete asset loss through pre-planted malicious delegates.
When users transfer ETH for gas or receive tokens like WLFI, the malicious contracts immediately redirect all funds to attacker-controlled addresses, leaving wallets permanently compromised.
The vulnerability stems from EIP-7702’s design, which allows EOAs to borrow execution logic from designated smart contracts temporarily.
Attackers exploit this vulnerability by installing delegate contracts that use the DELEGATECALL function to execute malicious code within the victim’s wallet context, thereby gaining complete control over the storage and funds.
Ethereum’s Account Abstraction Dream Becomes Security Nightmare.
EIP-7702 was designed to enhance Ethereum’s user experience by enabling wallets to execute smart contracts without permanently becoming contract-based addresses.
The upgrade aimed to reduce gas fees through bundled transactions and allow settlement using cryptocurrencies other than ETH, supporting Vitalik Buterin’s vision of seamless Web3 adoption.
However, the implementation created critical security risks when combined with private key compromise.
Hackers pre-install malicious delegate addresses that gain complete wallet control through DELEGATECALL operations, effectively turning victim wallets into attacker-controlled smart contracts while maintaining the original address.
Notable incidents include a $1.54 million phishing attack in August, where victims signed disguised batch transactions, and Inferno Drainer’s $146,000 MetaMask wallet drain through malicious delegation authorization.
The phishing group netted over $9 million across chains in 2025 by convincing users to authorize attacker-controlled delegate contracts.
Earlier in June, Wintermute’s research revealed that automated sweeper contracts account for the vast majority of EIP-7702 delegations, creating a systematic threat to Ethereum users.
The market maker developed CrimeEnjoyor, a tool that injects warnings into verified...
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