WLFI May Be Targeted by EIP-7702 Phishing Exploit Amid Alt5 Sigma Partnership and High Trading Volume

• Immediate risk: EIP-7702 delegate contracts can enable instant token drains after private key leakage.

• Community reports and security firms highlight bundled clones and phishing vectors driving WLFI thefts.

• Despite security issues, derivatives volume exceeded $12 billion and a major treasury partnership drove trading activity.

WLFI token security risk: World Liberty Financial faces EIP-7702 phishing exploits draining wallets. Read how to protect funds, verify official channels, and act now.

What is the WLFI token exploit?

WLFI token holders face a phishing exploit tied to Ethereum’s EIP-7702, where malicious delegate contracts are pre-installed after private key leakage, allowing attackers to drain funds immediately. Security experts report multiple incidents and community losses tied to delegated execution abuse.

How does EIP-7702 enable these phishing attacks?

EIP-7702 lets regular wallets temporarily act as smart contract wallets, enabling delegated execution and batch transactions. Attackers exploit this by installing a malicious delegate contract on a compromised wallet, then triggering immediate transfers when victims send ETH or interact with tokens.

SlowMist founder Yu Xian described thefts as “classic EIP-7702 phishing exploit,” citing private key leakage followed by delegate contract abuse. Analytics firms also flag an uptick in bundled-clone contracts mimicking legitimate projects.

Frequently Asked Questions

How do I check if my wallet is compromised?

Look for unknown delegate contracts, unexpected allowances, or transactions you did not sign. Use wallet explorers and on-chain analytics tools to inspect approvals and contract interactions immediately.

What should I do if WLFI tokens are stolen?

Do not interact with suspicious recovery services. Document the theft, contact official project support channels listed on the project’s verified site or email, and consider reporting to relevant authorities. Recovery is rarely guaranteed.

Key Takeaways

• EIP-7702 risk: Delegate contracts can be abused after private key leakage; revoke approvals and secure keys.
• High trading activity: WLFI saw extreme derivatives volume and a major partnership, increasing scrutiny and speculation.
• Community impact: Multiple users reported losses; impostor DMs and bundled clones are active threats—verify official channels only.

Yu Xian on WFLI’s exploitation

SlowMist founder Yu Xian warned WLFI token holders that attackers exploit EIP-7702 by pre-installing malicious delegate contracts in wallets that suffered private key leakage. Xian said victims often lose recurring token allocations and see funds drained immediately after interaction.

Security professionals note the Pectra upgrade that introduced EIP-7702 aimed to improve usability, but the change also widened attack surface for phishing and delegated-execution abuse.

On August 31, an X user reported WLFI tokens stolen shortly after sending ETH. The user’s screenshots and on-chain traces (shared on X) match patterns described by security teams.

Source: X

Source: Yu Xian/X

Community expresses their battles with WLFI

Community members reported targeted scams, including an early WLFI supporter whose MetaMask wallet was compromised on October 10, 2024. The user lost almost all assets despite not approving suspicious transactions, recovering only a fraction after vesting began.

Analysts from independent on-chain firms reported a surge in bundled clones—look-alike smart contracts that trick users into interacting and permanently losing funds. The WLFI team reiterated it does not provide support via direct messages and directed users to official email channels to avoid impostors.

WFLI trading activity still hit the spot

Despite the security concerns, WLFI’s derivatives volume soared past $12 billion and open interest rose across exchanges, per on-chain derivatives analytics. The token’s visibility increased further after a partnership with Alt5 Sigma tied it to a $1.5 billion crypto treasury strategy.

Source: CoinGlass

Conclusion

World Liberty Financial’s WLFI debut highlights a conflict between adoption and security: EIP-7702 usability gains have been leveraged by attackers, producing real losses even as trading activity surges. Token holders should prioritize wallet hygiene, revoke unwanted allowances, and rely only on official channels to reduce exposure. COINOTAG will continue to monitor developments and publish updates.