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Ethereum's retaking protocol EigenLayer has assured the community that its protocol is free of vulnerabilities following 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 commercial activity" regarding the wallet ending in "f10D." About 1.6 million EIGEN EigenLayer tokens worth about $5.7 million were sold from the wallet address.
Following EigenLayer's statement, Etherscan quickly flagged the address as under investigation.
Token Sale Due to a Single Hack.
On October 5, EigenLayer published a community update stating that the unauthorized token sale incident was due to a hack. The EigenLayer team said that the attacker compromised an email thread related to the transfer of the investor's tokens for storage.
As a result of the attack, 1.6 million investor tokens were transferred to the attacker. EigenLayer wrote:
"The attacker sold these stolen EIGEN tokens through a decentralized exchange platform and transferred the stablecoins to centralized exchanges".
Meanwhile, the minutes state that they have already contacted the platforms and authorities. "We are in contact with these platforms and law enforcement agencies. Some of the funds have already been frozen," Eigen Lyer added.
Although the tokens were stolen in the hack, the EigenLayer team assured the community that the incident was isolated and did not affect its wider ecosystem. The team stated that the trade-off was not related to any on-chain functionality. EigenLayer stated that there are no known vulnerabilities in the protocol or token contracts.
EigenLayer also said in a community post that it will continue to investigate and publish an update as soon as they have more information.
Related: EigenLayer TVL hits $12.9 billion, up 11% in one week – IntoTheBlock
EIGEN enters the top 100 market.
On October 1, the EIGEN token was unlocked. After the token was unlocked, it was trading at $3.85 on Binance, and its fully diluted valuation (FDV) was around $6.5 billion. According to data aggregator CoinMarketCap, the valuation placed the token in 94th place in terms of market capitalization.
On October 4, the EigenLayer team said it was investigating "unauthorized commercial activity" regarding the wallet ending in "f10D." About 1.6 million EIGEN EigenLayer tokens worth about $5.7 million were sold from the wallet address.
Following EigenLayer's statement, Etherscan quickly flagged the address as under investigation.
Token Sale Due to a Single Hack.
On October 5, EigenLayer published a community update stating that the unauthorized token sale incident was due to a hack. The EigenLayer team said that the attacker compromised an email thread related to the transfer of the investor's tokens for storage.
As a result of the attack, 1.6 million investor tokens were transferred to the attacker. EigenLayer wrote:
"The attacker sold these stolen EIGEN tokens through a decentralized exchange platform and transferred the stablecoins to centralized exchanges".
Meanwhile, the minutes state that they have already contacted the platforms and authorities. "We are in contact with these platforms and law enforcement agencies. Some of the funds have already been frozen," Eigen Lyer added.
Although the tokens were stolen in the hack, the EigenLayer team assured the community that the incident was isolated and did not affect its wider ecosystem. The team stated that the trade-off was not related to any on-chain functionality. EigenLayer stated that there are no known vulnerabilities in the protocol or token contracts.
EigenLayer also said in a community post that it will continue to investigate and publish an update as soon as they have more information.
Related: EigenLayer TVL hits $12.9 billion, up 11% in one week – IntoTheBlock
EIGEN enters the top 100 market.
On October 1, the EIGEN token was unlocked. After the token was unlocked, it was trading at $3.85 on Binance, and its fully diluted valuation (FDV) was around $6.5 billion. According to data aggregator CoinMarketCap, the valuation placed the token in 94th place in terms of market capitalization.
