GoKawiilBinance $5.9B drain linked to EIP-7702 delegation from Tornado Cash-funded address
On-chain analysts tracing Binance's suspected October 29 hack found that an address funded via Tornado Cash submitted an EIP-7702 delegation for a Binance hot wallet about three minutes before outflows began. The first transaction moved 167,464 ETH and 63 token transfers including 1.615 billion USDT, with losses across Ethereum, Bitcoin and Tron later estimated at $5.57 billion and rising; Chainalysis put the figure at $5.912 billion on October 30. Binance co-founder Changpeng Zhao said it appears to be a hack, but the exchange has not confirmed the EIP-7702 detail, which comes from a single researcher's analysis.
GoKawiil's interpretation of the reporting above, not reported fact.
Security researchers including Blockaid's Ido Ben-Natan suggest the pattern points to compromised signing infrastructure rather than a leaked private key, meaning the attacker could authorize transactions rather than simply stealing credentials. That distinction matters because rotating a stolen key stops further loss, while a compromised signing pipeline can keep approving transactions until detected, as seen in the earlier Bybit breach. If confirmed, this could push exchanges to scrutinize how EIP-7702 delegations interact with custodial wallet security.
- A Tornado Cash-funded address submitted an EIP-7702 delegation to a Binance hot wallet minutes before the drain began.
- Losses across Ethereum, Bitcoin and Tron are estimated between $5.57 billion and $5.912 billion according to Chainalysis.
- Researchers suspect compromised signing infrastructure rather than a stolen private key, though Binance has not confirmed this.
Ledger Nano X Hardware Wallet — Stories like this Binance drain underscore why keeping private keys off hot wallets and exchanges matters. A hardware wallet like the Ledger Nano X keeps your keys offline and isolated from smart-contract delegation exploits such as EIP-7702 abuse. It's a practical step toward self-custody security for anyone holding crypto long-term.
See Ledger Nano X Hardware Wallet on Amazon → Affiliate link — we may earn a commission on purchases, at no extra cost to you. Product picked by AI based on this article; it is not a tested recommendation.Source: techreport.com — Krishi Chowdhary, 2026-10-30
Published there as: “EIP-7702 and a Tornado Cash wallet: how the Binance drain may have happened”
Read the original report → The summary and analysis above are GoKawiil's own, written from reporting by the source above. Facts and quotes belong to the original publisher.