{"id":551809,"date":"2026-08-03T18:35:44","date_gmt":"2026-08-03T17:35:44","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=551809"},"modified":"2026-08-03T21:31:34","modified_gmt":"2026-08-03T20:31:34","slug":"researchers-just-uncovered-4200-malicious-smart-contracts-that-successfully-tricked-5700-victims-into-signing-away-their-crypto","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/researchers-just-uncovered-4200-malicious-smart-contracts-that-successfully-tricked-5700-victims-into-signing-away-their-crypto\/","title":{"rendered":"How 4,200 malicious smart contracts tricked 5,700 victims into signing away their crypto"},"content":{"rendered":"<p>Malicious smart contracts can make safety tools inside crypto wallets show a small gain even when the final transaction sends the user's deposit to an attacker, according to a July 30 arXiv preprint that links the technique to 5,742 victim addresses and about $3.48 million in historical losses.<\/p>\n<p>The <a href=\"https:\/\/arxiv.org\/abs\/2607.28747\">authors<\/a> used SimGuard, a contract-bytecode detector, to identify 4,224 transaction-simulation phishing contracts across Ethereum, BNB Smart Chain, Avalanche and Polygon.<\/p>\n<p>The study associated them with 6,223 victim transactions but called the loss estimate an upper bound because some attacker test activity may have been misclassified. It attributed 91.5% of the losses to Ethereum and about 83% of the cross-chain total to its largest inferred cluster.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/538m-stolen-by-drainers-eth-sol-wallets-unite-with-real-time-phishing-blocks\/\" class=\"cs-article-embed__link\">\n        <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">$538M stolen by drainers: ETH &#038; SOL wallets unite with real-time phishing blocks<\/h3>\n        <\/div>\n        <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\">\n            <i class=\"fa-light fa-arrow-up-right\"><\/i>\n        <\/span>\n    <\/a>\n<\/div>\n\n<p>The findings have not been peer reviewed. The paper also gives inconsistent figures for its Avalanche contract count and conflicting endpoints for the observation period, leaving its per-chain breakdown and exact time window unresolved.<\/p>\n<h2>How malicious smart contracts fool wallet previews<\/h2>\n<p>Transaction simulation takes a pre-signing snapshot of what a transaction is expected to do. The contracts described in the paper contain branches that can produce one result during that check and another when the transaction executes on-chain.<\/p>\n<p><a href=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/exec-60efdeb7-8110-4f4c-9699-0b2f7cfb395d.png\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-551840\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/exec-60efdeb7-8110-4f4c-9699-0b2f7cfb395d.png\" alt=\"Infographic showing how malicious smart contracts can make a wallet simulation appear safe before execution, with study figures for contracts, victim addresses, transactions and estimated losses.\" width=\"720\" height=\"1402\" \/><\/a><\/p>\n<p>In a storage-control example, the simulation returns the user's deposit plus a tiny reward. An attacker can then change the contract's state, such as by blacklisting the user's address, before the transaction lands. The executed branch sends the deposit to an attacker-controlled address instead.<\/p>\n<p>Timestamp-based contracts can exploit the later block time, while gas-control contracts can behave differently when the simulator and final transaction use different gas limits. Not every variant therefore requires an attacker to alter stored on-chain data after the preview.<\/p>\n<p>In a controlled test, the authors sent an account's balance to a contract that returned as little as 1 wei, the smallest unit of ETH. They reported that several tested previews displayed a positive estimate and most did not clearly show the full outgoing amount.<\/p>\n<p>The paper does not identify the wallet versions, settings, or simulation backends used by victims of these malicious smart contracts. MetaMask's <a href=\"https:\/\/support.metamask.io\/manage-crypto\/transactions\/simulations\/\">current documentation<\/a> calls estimated balance changes predictions and warns that the final outcome is not guaranteed.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/metamask-just-gave-ai-agents-a-defi-wallet-with-a-leash\/\" class=\"cs-article-embed__link\">\n        <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">MetaMask opens AI wallet for DeFi agents as security risks shift to user rules<\/h3>\n        <\/div>\n        <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\">\n            <i class=\"fa-light fa-arrow-up-right\"><\/i>\n        <\/span>\n    <\/a>\n<\/div>\n\n<p>A <a href=\"https:\/\/etherscan.io\/tx\/0x014321fbace3c22ade53fd34a81981c92b499451e70bc840f567bc22c95de700\">Jan. 8, 2025 Etherscan transaction<\/a> cited by the study records a Claim() call moving about 143.45 ETH through a <a href=\"https:\/\/etherscan.io\/address\/0x000008e4e9597890e93f60b4d8dd3610e1700000\">contract Etherscan labels as phishing<\/a>. The on-chain record supports the transfer described in the paper, although it cannot show what appeared in the user's wallet preview.<\/p>\n<p>The authors recommend re-running simulations when relevant contract state or gas fields change, using the gas limit and gas price in the actual request, and testing current and future block-number and timestamp inputs. Their UI findings also support showing the gross amount leaving a wallet alongside an accurate net balance change, so a negligible refund cannot be mistaken for a profit.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/hundreds-of-evm-wallets-drained-what-to-check-before-you-update\/\" class=\"cs-article-embed__link\">\n        <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">Hundreds of MetaMask wallets drained: What to check before you &#8216;update'<\/h3>\n        <\/div>\n        <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\">\n            <i class=\"fa-light fa-arrow-up-right\"><\/i>\n        <\/span>\n    <\/a>\n<\/div>\n\n<p>The preprint describes historical activity involving these malicious smart contracts, not a live July or August attack wave. Its detector evaluation covered 44 contracts, including 30 generated with Gemini, and the linked <a href=\"https:\/\/anonymous.4open.science\/r\/Blockchain-Transaction-Simulation-Phishing-BE81\">code-and-data repository<\/a> returned HTTP 401 when checked.<\/p>\n<p>The aggregate results therefore remain the authors' findings rather than an independently reproduced measurement.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The unpeer-reviewed study links 4,224 contracts to 5,742 victim addresses, while its Avalanche count and collection cutoff conflict.<\/p>\n","protected":false},"author":1264,"featured_media":551932,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[77968,77921,9836,60206],"tags":[76230,77540,72190,77461,78358],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - 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