What is EIP-7702? The Ethereum Upgrade Behind the $6.4B Binance Hack

EIP-7702 is an Ethereum upgrade activated in May 2025 that allows standard externally owned accounts to temporarily borrow smart contract code while retaining their addresses and funds. While designed to enable features like batched transactions and gas sponsorship, the upgrade was exploited in October 2026 during a $6.4 billion Binance hot wallet hack attributed to North Korea. Attackers used pre-signed EIP-7702 authorizations to turn a hot wallet into a sweeper contract, though analysts noted the broader breach stemmed from compromised hot wallet signing infrastructure rather than an Ethereum protocol flaw. Open article →