EigenLayer says in $5.7M hack ‘isolated’ incident, no vulnerabilities in protocol
Ethereum recovery protocol EigenLayer has assured the community that the protocol has no vulnerabilities after an incident in which nearly $6 million worth of tokens were stolen from an investor.
On October 4, the EigenLayer team said it was investigating “unauthorized sales activity” regarding a wallet ending in “f10D.” The wallet address sold about 1.6 million of EigenLayer's EIGEN tokens, worth about $5.7 million.
Etherscan quickly flagged the address as under investigation following EigenLayer's announcement.
Selling tokens due to independent hacking
On October 5, Eigenlayer issued a community update saying the unapproved token sale incident was due to hacking. The EigenLayer team says a malicious attacker compromised an email thread that involved jailbreaking an investor's token.
As a result of the attack, the investor's 1.6 million tokens were transferred to the attacker. EigenLayer wrote:
The attacker sold these stolen EIGEN tokens on a decentralized exchange platform and transferred the stablecoin to the central exchange.
Meanwhile, the protocol said that they have already met with the forum and the authorities. “We are in contact with these platforms and law enforcement. A part of the money has already been blocked,” Eigenlayer added.
While the tokens were stolen in a hack, the EigenLayer team assured the community that the incident was isolated and did not affect the wider ecosystem. The group said the deal is not related to any onchain activity. EigenLayer says there are no known vulnerabilities in the protocol or token contracts.
EigenLayer also said it will continue to investigate the community update and will post an update once it receives more information.
Related: EigenLayer TVL Hits $12.9B, Up 11% in One Week – To Zeblock
OWN paid 100 market standards.
On October 1, the EIGEN token was launched. The token was traded at $3.85 on Binance after launch, putting its fully liquidated value (FDV) at $6.5 billion. According to the data aggregator CoinMarketCap, the estimate ranks 94th in terms of market capitalization.
As of October 5, coin data website EIGEN shows trading at around $3.38. This puts FDV at $5.6 billion, placing it 99th in the crypto market capitalization rankings. Magazine: Rethinking Ethereum: Blockchain Innovation or Dangerous House of Cards?
