Ethereum restaking protocol EigenLayer reassured the community that its protocol has no vulnerabilities after an incident where almost $6 million in tokens were stolen from an investor.
On Oct. 4, the EigenLayer team stated they were investigating an “unapproved selling activity” involving a wallet with the address ending in “f10D.” The wallet sold approximately 1.6 million EigenLayer EIGEN tokens, valued at around $5.7 million.
Etherscan promptly flagged the address for investigation following EigenLayer’s announcement.
Token selling due to an isolated hack
On Oct. 5, EigenLayer issued a community update explaining that the unauthorized token-selling incident was the result of a hack. The EigenLayer team revealed that a malicious attacker had compromised an email thread related to an investor’s token transfer into custody.
Due to the attack, the investor’s 1.6 million tokens were transferred to the attacker. EigenLayer stated:
“The attacker sold these stolen EIGEN tokens via a decentralized swap platform and transferred stablecoins to centralized exchanges.”
Additionally, EigenLayer mentioned they had been in contact with relevant platforms and authorities. “We are in contact with these platforms and law enforcement. A portion of the funds have already been frozen,” EigenLayer added.
Despite the tokens being stolen through a hack, EigenLayer assured the community that the incident was isolated and did not impact its broader ecosystem. The team emphasized that the compromise was not related to any onchain functionality. EigenLayer confirmed there are no known vulnerabilities in the protocol or token contracts.
In the community update, EigenLayer also stated they would continue their investigation and provide further updates as more information becomes available.
Related: EigenLayer TVL hits $12.9B, climbs 11% in one week — IntoTheBlock
EIGEN cracks top 100 market rank
On Oct. 1, the EIGEN token was unlocked and began trading at $3.85 on Binance, resulting in a fully diluted valuation (FDV) of approximately $6.5 billion. According to CoinMarketCap data, this valuation positioned the token at the 94th spot by market capitalization.
As of Oct. 5, the EIGEN token was trading at around $3.38, with an FDV of $5.6 billion, placing it at the 99th spot in the overall crypto market capitalization rankings.
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