đ¨ ETHEREUM UPGRADE UNDER FIRE AS WALLET-DRAINING BOTS EXPLOIT DELEGATION FEATURE â ď¸
Ethereum's latest protocol upgrade, intended to boost network efficiency and decentralization through a new delegation feature, has taken an unexpected turn. Security firms are now sounding the alarm as attackers deploy wallet-draining bots that exploit this very feature. Malicious smart contracts are reportedly on the rise, triggering concerns across the crypto ecosystem.
The delegation mechanism was designed to simplify user participation in Ethereumâs ecosystem by allowing users to delegate actions to third-party contracts. However, opportunistic attackers have weaponized this by tricking users into interacting with malicious contracts that, once authorized, can drain entire wallet balances without further user input.
Leading blockchain security firms such as PeckShield and CertiK have issued urgent warnings, noting a spike in malicious contract activity linked directly to this delegation flaw. These exploits are primarily targeting inexperienced or distracted users who are authorizing transactions without fully understanding the permissions they're granting.
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According to on-chain data, millions in ETH and ERC-20 tokens have already been siphoned off in the past few days, as bots relentlessly scan the network for exploitable opportunities. What makes this wave particularly dangerous is its stealthâthe contracts often appear legitimate and execute under the radar, bypassing many traditional safety alerts.
Ethereum developers are now under pressure to respond quickly. While decentralization allows for rapid innovation, it also means upgrades must be rigorously vetted to avoid vulnerabilities like this.
