Ethereum’s EIP-7702 Exploit Highlights Security Risks Amid Pectra Upgrade

The Ethereum Pectra upgrade, initially praised for its enhancements to wallet usability and transaction efficiency, has encountered significant backlash following an exploit involving EIP-7702. This feature, proposed by Vitalik Buterin, was designed to temporarily grant wallets smart contract capabilities to streamline advanced transactions such as sponsored gas fees and passkey security. However, it was weaponized in a phishing attack that drained $150,000 from a user. Despite this setback, Ethereum’s price remains resilient at 2611.02000000 USDT as of June 3, 2025. This incident underscores the ongoing challenges in balancing innovation with security in the rapidly evolving cryptocurrency landscape. While the Pectra upgrade represents a forward-looking step for Ethereum, the exploit serves as a stark reminder of the importance of robust security measures. The community is now closely watching how Ethereum’s developers will address these vulnerabilities to ensure the network’s long-term growth and adoption.

Ethereum EIP-7702 Exploit Drains $150K in Phishing Scam

Ethereum’s Pectra upgrade, celebrated for enhancing wallet usability and transaction efficiency, faces backlash after an exploit involving EIP-7702. The feature, designed to temporarily grant wallets smart contract capabilities, was weaponized in a phishing attack that siphoned $150,000 from a user.

Proposed by Vitalik Buterin, EIP-7702 aimed to streamline advanced transactions like sponsored gas fees and passkey security. Instead, it introduced a vulnerability allowing attackers to hijack wallets through temporary smart contract delegations. Wintermute reports most delegations are now tied to malicious activity.

Ethereum Foundation Consolidates R&D Units to Accelerate Scaling and UX Improvements

The ethereum Foundation has merged its protocol research and development teams into a unified division called Protocol, signaling a strategic shift toward faster execution on core technical challenges. Three priority areas now dominate the roadmap: base-layer scaling, expanded blob capacity for Layer 2 networks, and user experience enhancements.

High-profile leads including Tim Beiko and Dankrad Feist will steer specialized tracks, with the restructuring directly addressing Ethereum’s growing role as a settlement LAYER amid rising demand. The leaner structure aims to shorten development cycles between research and production, particularly for zkEVM rollups and hardened Layer 2 systems.

Notably, the reorganization involved staff reductions, with the Foundation openly encouraging other Ethereum projects to recruit departing researchers. This consolidation reflects blockchain’s maturation phase—where optimized execution rivals theoretical innovation in importance.

ETH Price Eyeing Massive Rebound Amid Institutional Accumulation

Sharplink Gaming’s plan to issue 72.05 million shares to fund Ethereum purchases has ignited bullish sentiment. The firm confirmed all proceeds from the $79.21/share offering will FLOW directly into ETH accumulation, building on its May announcement of a $1 billion treasury initiative with Consensys.

Nasdaq-listed BTCS continues stacking Ethereum, adding 1,000 ETH ($2.63M) to reach 12,500 ETH holdings. This institutional demand coincides with Ethereum’s 39th Core developer meeting focused on the Fusaka upgrade, creating fundamental momentum beneath price action.

Market observers note these developments mirror 2020-2021 accumulation patterns that preceded ETH’s last major bull cycle. The dual catalysts of public company treasury strategies and protocol improvements suggest growing recognition of Ethereum’s store-of-value proposition alongside its utility network.

Ethereum Foundation Restructures R&D Division Amid Major Protocol Overhaul

The Ethereum Foundation is consolidating its Protocol R&D teams under a new "Protocol" brand, signaling a strategic shift in development priorities. Three CORE initiatives will drive the restructuring: scaling Layer 1 solutions, optimizing blob storage capacity, and refining user experience frameworks.

This reorganization follows closely on the heels of the Pectra Upgrade, with foundation leadership acknowledging the need to streamline what they describe as an increasingly convoluted protocol development process. "We must rethink our current approach to designing, developing, and stewarding the protocol," the organization stated, suggesting deeper architectural changes may be forthcoming.

The MOVE comes as Ethereum solidifies its position as the dominant smart contract platform, with foundation researchers anticipating near-term breakthroughs in scalability and usability. However, the restructuring will see some team members depart as operations become more focused.