Trump-linked decentralized finance (DeFi) project World Liberty Financial (WLFI) said it blocked hacking attempts targeting its token launch by blacklisting compromised wallets onchain. 

On Wednesday, WLFI said that a designated wallet executed “mass blacklisting” transactions to disable accounts identified as compromised before it launched. The team said the hacking attempts stemmed from end-user compromises like private key losses and stressed that the incidents were not an exploit of the WLFI project itself. 

WLFI said the project’s blacklisting efforts prevented attempts to hack its “Lockbox,” a vesting mechanism that safeguards locked token allocations for its users. “This allowed us to block the theft attempts from the Lockbox,” WLFI wrote, linking to two Etherscan transactions showing the blacklist in action. 

The team added that they are working with compromised users so that they can regain access to their accounts. 

Bad actors continue to target WLFI users

On Monday, World Liberty Financial unlocked 24.6 billion WLFI tokens as it opened trading for the first time. Since then, hackers and scammers have attempted to profit from the event, targeting users and the project. 

Analytics firm Bubblemaps identified “bundled clones,” which are look-alike smart contracts that imitate the project. This aims to trick unsuspecting users into engaging with fake contracts instead of legitimate ones and steal their crypto. 

Yu Xian, the founder of security company SlowMist, reported that some WLFI holders are being drained of their tokens through a known exploit using the Ethereum Improvement Proposal (EIP)-7702 upgrade. 

Xian said WLFI holders are being drained using a “classic EIP-7702 phishing exploit.” He explained that bad actors plant hacker-controlled addresses in victim wallets, allowing them to snatch the tokens when a deposit is made. 

Related: Trump-backed WLFI to unlock 24.6B tokens at launch

EIP-7702 upgrade opens offchain attack vector

In May, Ethereum’s Pectra upgrade introduced EIP-7702, which allowed externally owned accounts to temporarily act like smart contract wallets. This enabled the delegation of execution rights and allowed batch transactions, with the goal of streamlining user experience. 

However, while the upgrade’s goal was to enhance user experience, security experts identified a new attack vector that could allow hackers to drain funds using only an offchain signature. 

Solidity smart contract auditor Arda Usman previously told Cointelegraph that it’s possible for attackers to drain user funds with only an offchain signed message with no direct onchain transaction being signed.

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]]> https://earlybirdsinvest.com/wlfi-blocks-hacking-attempts-with-onchain-blacklisting/feed/ 0 56536 https://earlybirdsinvest.com/ethereum-attempts-first-major-horizontal-reclaim-in-months-can-bulls-hold-the-line/ https://earlybirdsinvest.com/ethereum-attempts-first-major-horizontal-reclaim-in-months-can-bulls-hold-the-line/#respond Fri, 25 Apr 2025 21:40:19 +0000 https://earlybirdsinvest.com/ethereum-attempts-first-major-horizontal-reclaim-in-months-can-bulls-hold-the-line/

Ethereum is trading above $1,700 after a volatile few weeks, with bulls now trying to reclaim higher levels and flip resistance into support. Despite lingering macroeconomic tensions and the ongoing trade standoff between the US and China, markets are beginning to price in optimism as investors anticipate progress in negotiations. This renewed sentiment has lifted risk assets like ETH, which is showing early signs of a potential breakout.

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Analysts are closely watching Ethereum’s current price action, which suggests a possible shift in trend. Top analyst Daan shared a technical view on X, highlighting that ETH is attempting to retake its previous horizontal support around $1,750. If successful, this would mark the first time in months that Ethereum reclaims a key support level after previously rejecting it and setting lower lows.

As Ethereum fights to regain lost ground, all eyes are on this critical level. A breakout here could lead to a renewed surge across the altcoin market, reinforcing growing speculation that the worst of the correction may already be behind us.

Ethereum Bulls Attempt to Shift Market Structure

Ethereum has rallied impressively, gaining over 32% from its local low of $1,383. This recovery has brought ETH to a critical price level, where bulls must hold and build momentum to break the broader downtrend that has defined much of 2024. A sustained move above current levels could mark a long-awaited shift in market structure, providing confidence that Ethereum is ready to trend higher over the medium term.

However, broader macroeconomic forces continue to weigh heavily on investor sentiment. Ongoing trade tensions between the United States and China remain unresolved, with each new tariff threat adding further strain on global supply chains. These geopolitical pressures threaten to limit risk appetite, and any further escalation could stall Ethereum’s recovery. On the flip side, a diplomatic breakthrough could trigger a strong shift in investor positioning across all risk assets, including crypto.

In the meantime, Ethereum must defend current levels to keep bullish momentum intact. Daan’s analysis highlighted that ETH is currently testing the $1,750 level, which previously acted as key support. If Ethereum can reclaim this horizontal zone, it would mark the first time in months that ETH retakes rather than rejects a critical level. Daan emphasized that daily closes above $1,750 are ideal and would confirm strength, potentially opening the door for a larger breakout.

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ETH Price Holds Key Levels, Bulls Must Reclaim $2K Soon

Ethereum is currently trading at $1,770, maintaining strength above the 4-hour 200 EMA—a key short-term indicator that has historically acted as both resistance and support during critical trend shifts. Bulls have managed to defend this level over the past few sessions, signaling growing confidence and momentum as Ethereum attempts to recover from its recent downtrend.

Holding above the $1,700 zone is now essential to avoid triggering another wave of selling. This level has become the new battleground for bulls and bears, and continued consolidation above it may lay the groundwork for a broader rally. The next major objective is a decisive reclaim of the $2,000 level. A breakout above this threshold would mark a strong shift in sentiment and could trigger additional upside as sidelined buyers re-enter the market.

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However, caution remains warranted. A failure to hold current support would invalidate the recovery narrative and open the door to further losses. If Ethereum breaks below $1,700 with volume, it could revisit the $1,500 level, which has acted as a historical demand zone. That would reinforce a longer-term bearish structure and delay any hopes of a full-scale recovery.

Featured image from Dall-E, chart from TradingView