EigenLayer Assures Investor That Hack Targets Investor and No Vulnerabilities of Its Protocol Exist. Eth E restaking protocol EigenLayer announced the platform remains safe after the theft of $5.7 million worth of EIGEN tokens. The theft happened at the individual investor level and did not disclose any protocol vulnerabilities.
Unauthorized Sale of Tokens Spurs Investigation
On October 4, EigenLayer announced that the project was investigating an unauthorized sale of tokens out of a wallet ending in “f10D.” Some 1.6 million EIGEN tokens, valued at approximately $5.7 million, had been sold without authorization. Etherscan was quick to flag the transaction and label the wallet as under investigation.
Isolated Hack via Investor Email Compromise
On October 5, EigenLayer updated that indeed, an unauthorized sale had taken place due to the hacking of an email thread with regard to an investor’s token transfer. The stolen EIGEN tokens were sold on decentralized exchanges and converted into stablecoins that were transferred to centralized exchanges. These, EigenLayer is working with actively in cooperation with law enforcement agencies to recover the funds, some of which have already been frozen.
Protocol Integrity Remains Intact
However, despite that, EigenLayer has managed to seal it in concrete that the protocol remained safe. The team assured that “the hack had been an isolated incident and had nothing to do with on-chain functionality or token contract vulnerabilities.” Recovery efforts and investigations continue, and be rest assured that once EigenLayer has more information available, the community will be updated.
EIGEN Token Performance Amid Hack
EIGEN tokens have caused a bit of fluctuation in the market amidst this security breach. EIGEN was trading on Binance against USDT at the price of $3.85 on October 1 after the token had just unlocked. The token’s FDV stood at $6.5 billion and ranked 94th by market capitalization. As of October 5, the token had fallen in price to $3.38, dropping the FDV down to $5.6 billion and ranking in at the 99th position.
Conclusion
While EigenLayer has had an isolated hack affecting a single investor, the team is confident that, in itself, the protocol is secure without any real underlying vulnerabilities. As recovery continues, the broader crypto community continues to be vigilant in supporting a transparent and safe ecosystem.
