The Donald Trump–backed World Liberty Financial (WLFI) token launched with major hype, but a known Ethereum exploit is already draining investors’ wallets. Here’s what’s happening — and why it matters for the future of blockchain security.
WLFI Holders Under Attack
The highly anticipated launch of World Liberty Financial’s (WLFI) governance token has been overshadowed by a wave of wallet drains. According to blockchain security firm SlowMist, hackers are targeting WLFI investors using the “classic EIP-7702” phishing exploit.
Ethereum’s Pectra upgrade in May introduced EIP-7702, a feature that allows external accounts to act like smart contract wallets. While designed to improve usability with batch transactions, attackers are now weaponizing it to bypass security and sweep tokens.
Yu Xian, founder of SlowMist, confirmed that hackers are pre-planting malicious delegate contracts inside victim wallets. Once a user deposits tokens, the exploit triggers, and the assets are stolen in seconds.
How the Exploit Works
The exploit isn’t a flaw in Ethereum itself but a phishing-driven vulnerability that thrives when private keys are leaked. Here’s the attack flow:
- Step 1: Hackers steal private keys (often via phishing schemes).
- Step 2: They inject a malicious delegate contract into the wallet.
- Step 3: When victims transfer WLFI or ETH, the transaction reroutes through the attacker’s contract.
- Step 4: Gas fees and tokens are instantly drained.
Xian explained that once a wallet is compromised, even sending ETH for gas fees can be risky — the exploit sweeps it away before the user can secure their tokens.
His advice: “Cancel or replace the ambushed EIP-7702 with your own” and move funds into a safe wallet immediately.
WLFI Community in Crisis
WLFI tokenholders are voicing their frustration and fear across forums and social platforms:
- @hakanemiratlas said he only managed to rescue 20% of his WLFI tokens before hackers drained the rest.
- @Anton warned that whitelisted wallets used for the presale are especially vulnerable. Automated bots often snatch tokens the instant they arrive.
Some community members are asking the WLFI team to consider a direct transfer option for safer token claims.
Meanwhile, the WLFI team has urged investors to beware of scams:
“We do not contact users via DMs. Official support only comes through verified emails. Any other outreach is fraudulent.”
Adding to the chaos, analytics firm Bubblemaps flagged several look-alike WLFI smart contracts, designed to trick investors into interacting with fake projects.
Bigger Picture: What It Means for Ethereum Users
The WLFI exploit shows that even legitimate Ethereum upgrades can become double-edged swords. EIP-7702 was meant to streamline user experience, but in the wrong hands, it created a powerful attack vector.
This raises questions not only about WLFI’s token security but also about the risks facing any Ethereum-based project that integrates EIP-7702 without strong safeguards.
AI Satoshi’s Analysis
The exploit demonstrates how new protocol features, if combined with weak key management, can become attack vectors. By abusing delegated execution, attackers pre-plant malicious contracts to intercept transfers once private keys are compromised. This highlights the dual reality of innovation: while upgrades aim to improve usability, they also expand the surface for exploitation when users rely on custodial shortcuts or fall for phishing schemes.
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💬 Would you move your WLFI tokens after reading this?
⚠️ Disclaimer: This content is generated with the help of AI and intended for educational and experimental purposes only. Not financial advice.