A study by researchers from Sun Yat-sen University, Zhejiang University, Peking University, and other institutions has identified 65,340 high-risk address misuse cases on Ethereum and BNB Chain, linked to approximately $574.8 million in lost cryptocurrency. The research highlights vulnerabilities in blockchain networks, including testnet address confusion, reused contracts, and exploitation of mechanisms such as EIP-7702.
The findings, published in a report by Blockaid on 1 August 2026, reveal two primary types of misuse: Contract Account (CA) and Externally Owned Account (EOA). CA misuse cases accounted for 49,344 incidents, resulting in losses of 22,738.41 ETH and 8,681.41 BNB, while EOA misuse cases numbered 15,996, with losses of 104,224.53 ETH and 9,045.29 BNB. The study analysed 10 million candidate addresses, 16 million exposed private keys, and 2.5 million transactions across Ethereum and BNB Chain.
Manual checks conducted by the researchers achieved a precision rate of 99.11%, confirming the scale of the issue. Notably, 17,270 cases involved exploitation of EIP-7702, a mechanism designed to improve user experience but inadvertently creating security risks. The study also identified 469 CA misuse cases linked to 3,446.37 ETH and 431.79 BNB in losses, underscoring the recurring nature of such vulnerabilities.
The research underscores systemic challenges in blockchain security, with Uniswap—represented as a router address in the study—highlighted as an example of platforms potentially exposed to misuse. The findings call for enhanced safeguards against testnet address confusion and the reuse of compromised contracts.
Written by Timothy Mason
Altcoins Desk
