After an internal error, EigenLayer sent the equivalent of $5.6 million worth of EIGEN token to a fraudulent address. What happened?
EigenLayer sends 1.67 million EIGEN tokens by mistake to a fraudulent address
On Friday, teams from the EigenLayer restaking protocol highlighted an address that had carried out a suspicious sale of EIGEN tokens equivalent to more than $5.6 million at the current price. In fact, this was not supposed to happen given the blocking periods imposed on employees, which led to an internal investigation:
Community Update
We are investigating a selling approved activity associated with this wallet: (https://t.co/Pp9KoTfACp).
We will share our findings with the community as soon as possible.
— EigenLayer (@eigenlayer) October 4, 2024
💡 What is the EigenLayer (EIGEN) protocol?
In reality, it turned out that the owner of the address in question was not an employee of EigenLayer, but a hacker who had managed to ensure that he received tokens directly from the multisig address of the protocol:
This morning, in an isolated incident, an email thread involving the transfer of tokens from an investor to a custodial entity was compromised by a malicious attacker. As a result, 1,673,645 EIGEN tokens were mistakenly transferred to the attacker's address. He sold these stolen EIGEN tokens via a decentralized exchange platform and transferred stablecoins to centralized exchange platforms.
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Following this error, EigenLayer teams contacted law enforcement as well as centralized exchange platforms, and thus managed to freeze part of the stolen funds. They also insist on the fact that this had no impact on its ecosystem and that the funds present on its application were not in danger.
👉 On the same topic — Justin Sun received $8.75 million with the EigenLayer (EIGEN) airdrop
At the same time as writing these lines, the EIGEN token is trading at $3.48 per unit, up 9.2% over 24 hours. Furthermore, its capitalization is $651.5 million, which places the asset in 117th place in the CoinGecko ranking.
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Since 2021, I have devoted my free time to seriously educating myself on cryptocurrencies in order to acquire maximum knowledge and credibility. I often have the opportunity to conduct interviews with influential figures in the blockchain industry. I also conduct in-depth analyzes on Web3 themes to offer exclusive content to Cryptoast readers.
Vincent Maire
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