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Startale

Sep 16, 2026

$3K
Lost
$3K
Recovered
$0
Net loss
$3K
Unrecovered0% recovered

Attacker exploited Startale ERC-7579 smart-account initialization logic to take control of pre-funded counterfactual accounts as they were deployed. The initializeAccount(bytes) permitted an attacker-controlled bootstrap to execute via delegatecall, while an initialization authorization flag stored with transient storage remained set for the entire transaction.

The attacker could therefore deploy a victim’s pre-funded account and reinitialize it again in the same transaction with a malicious bootstrap, allowing its assets to be swept.

How the exploit worked

View reproducible PoC

transient storage init flag outlives the constructor and lets anyone reinitialize an ERC7579 account and drain it.

Lost: 427.551160 USDC drained in this batch tx (32.555561 USDC reproduced across 3 of 23 victim accounts; ~$2,876 USDC+USDT aggregate across 41 known batches)

Source: DeFiHackLabs (SunWeb3Sec)

Target
DeFi
Classification
Access Control
Technique
Improper Access Control
Attribution
Unknown
Chains
Ethereum

Event timeline

  1. Sep 16, 2026
    Exploit executed — $3K drained via improper access control
  2. Attributed to Unknown
  3. Recovery status Unrecovered 0%

Data credits

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