Dormant PancakeSwap LP hit by EIP-7702 signature scam, loses $2.96M
AI Market Summary
A PancakeSwap liquidity provider reportedly lost ~$2.96M after signing a malicious EIP7702 authorization, enabling an attacker to pull BSCUSD and BUSD liquidity and swap proceeds into ETH. Funds routed to Tornado Cash heighten tracing and compliance concerns. The incident reinforces ongoing wallet-signing and authorization risks in DeFi, potentially weighing on sentiment around PancakeSwap and BSC-based liquidity provision near term.
Impact level
● Medium
Affected assets
CAKE/USDT-1.08%
AI Insight · CAKE/USDTAI Insight
▼ Bearish
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Odaily Planet Daily reported that on-chain security monitor Specter flagged a suspected exploit involving a long-inactive PancakeSwap liquidity provider (LP). The victim allegedly lost about $2.96 million after signing a malicious EIP-7702 authorization.
The attacker is said to have pulled roughly $1.48 million in BSCUSD liquidity and another $1.48 million in BUSD liquidity from the victim's positions, then swapped the BUSD into ETH. Funds tracing shows about $1.46 million has been deposited into Tornado Cash. The remaining $1.48 million in USDT is still held in the attacker's address.
