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October 5, 2024EigenLayer Addresses Security Incident: Community Update on Stolen Tokens
In light of a recent security breach, Ethereum restaking protocol EigenLayer has reassured its community that its protocol remains secure and free from vulnerabilities. This comes after an incident where nearly $6 million worth of tokens were stolen from an investor.
On October 4, EigenLayer announced that it was probing an “unapproved selling activity” linked to a wallet address ending in “f10D.” This particular wallet sold approximately 1.6 million of EigenLayer’s EIGEN tokens, valued at around $5.7 million. Following EigenLayer’s announcement, Etherscan flagged the address as under investigation.
The Nature of the Hack
In a follow-up update on October 5, EigenLayer clarified that the unauthorized token sales were the result of a hack. The attackers managed to compromise an email thread related to an investor’s token transfer. Consequently, the investor’s 1.6 million tokens were transferred to the malicious actor.
EigenLayer detailed the events: “The attacker sold these stolen EIGEN tokens via a decentralized swap platform and transferred stablecoins to centralized exchanges.”
EigenLayer has confirmed that it is actively working with both the affected platforms and law enforcement agencies. “A portion of the funds have already been frozen,” they noted, underscoring their commitment to addressing the situation.
Despite the theft, EigenLayer reassured users that the incident was isolated and did not impact the broader ecosystem. They emphasized that the compromise was unrelated to any on-chain functionality, and there are no known vulnerabilities within their protocol or token contracts.
Continued Investigation and Updates
The EigenLayer team has committed to continuing its investigation and will provide further updates as new information becomes available.
Following the unlocking of the EIGEN token on October 1, it initially traded at $3.85 on Binance, achieving a fully diluted valuation (FDV) of approximately $6.5 billion and ranking 94th in market capitalization according to CoinMarketCap. As of October 5, EIGEN’s trading price has dropped to around $3.38, resulting in an FDV of $5.6 billion and a current market rank of 99.
