- EigenLayer confirmed a $6M token theft from an investor but assured the protocol remains secure with no known vulnerabilities.
- The attacker compromised an email thread, sold 1.6M EIGEN tokens, and transferred stablecoins to centralized exchanges.
- Despite the hack, EigenLayer froze some stolen funds and confirmed the incident was isolated, unrelated to its on-chain functionality.
EigenLayer, a protocol specializing in Ethereum restaking, has confirmed that it remains secure after a significant hack on October 4, where an investor lost nearly $6 million worth of tokens.
Consequently, the incident has prompted an investigation by the EigenLayer team, who assured the community that the attack did not affect its broader system. Although the stolen tokens were sold, the protocol emphasized that the breach was isolated and unrelated to its on-chain functionality.
Investigation Underway After Investor’s Tokens Stolen
On October 4, EigenLayer disclosed that it was investigating an unapproved sale of EIGEN tokens from a wallet associated with an investor. The wallet, ending in “f10D,” sold approximately 1.6 million EIGEN tokens, valued at around $5.7 million. Etherscan flagged the address, placing it under investigation, while EigenLayer worked to track the stolen assets.
Notably, the protocol later revealed that the sale was a result of a hack, where an attacker compromised an email thread involving the investor’s token transfer. As a result, the attacker gained access to the tokens and sold them through a decentralized swap platform. They then transferred the proceeds, in stablecoins, to centralized exchanges.
Funds Frozen, Protocol Assures Security
In response, EigenLayer communicated with relevant platforms and law enforcement agencies. A portion of the stolen funds has already been frozen, according to the team. The EigenLayer team continues its investigation and promised to provide further updates once more information is available.
Moreover, despite the hack, the EigenLayer team assured the community that the incident did not expose any vulnerabilities in the protocol or its token contracts. They emphasized that the theft was an isolated event, unrelated to the platform’s functionality. EigenLayer confirmed that the protocol remains secure, with no known weaknesses in its ecosystem.
On October 1, prior to the hack, EIGEN tokens were unlocked, trading at $3.85 on Binance. This placed the token’s fully diluted valuation at about $6.5 billion, securing it the 94th spot by market capitalization, according to CoinMarketCap.
However, by October 5, the token’s value dropped to around $3.38. Consequently, this lowered its valuation to $5.6 billion, pushing it down to the 99th position in the crypto market rankings.
The post EigenLayer Assures $5.7M Hack Was an ‘Isolated’ Incident, No Protocol Vulnerability Detected appeared first on Crypto News Land.
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