EddieJayonCrypto
7 Oct 24
The EigenLayer team experienced "unapproved selling activity" involving about $5.5 million worth of EIGEN tokens. The incident was caused by a compromised email thread, leading to the transfer of tokens to a malicious attacker's wallet. The team is collaborating with law enforcement, and some stolen...
The EigenLayer team faced fallout from unapproved selling activity, leading to stolen EIGEN tokens. The incident stemmed from compromised email communication, resulting in tokens being transferred to a malicious attacker's wallet. Law enforcement is involved, and a portion of the stolen funds has been frozen. The team emphasized that the incident did not stem from protocol or token contract vulnerabilities.
Members of the crypto community expressed skepticism, advocating for the elimination of human error with smart contracts. The price of EIGEN tokens fluctuated, falling to a low of $3.08 over the weekend but rebounding to $3.33 at the time of writing.
The team stated that the tokens were set to be unlocked for trading on Sept. 30 after being airdropped to users nearly five months earlier. The incident involved around $5.5 million worth of EIGEN tokens and prompted scrutiny from the crypto community regarding security measures.
CEO emphasized social engineering in the EigenLayer incident, stressing the critical need for validation in on-chain interactions and anti-phishing measures. Blockchain data showed that the stolen tokens were sold via a decentralized swap platform, with some funds frozen and a portion exchanged for stablecoins.