Subscribe to Bankless or sign in
EigenLayer has addressed an incident in which $5.5M worth of its tokens were transferred to an attacker, following suspicions of insider selling.
What's the Scoop?
- Compromise Details: An investor’s email thread was compromised, leading to the unauthorized token transfer.
- Proceeds and Action: The attacker swapped the tokens for stablecoins and moved the funds to exchanges. Some of the proceeds have been frozen.
- Protocol Statement: EigenLayer clarified that there is no known vulnerability in the protocol itself, and token contracts remain secure.
Bankless Take:
While EigenLayer’s quick response in freezing part of the proceeds shows their ability to work with exchanges and law enforcement in a crisis, the incident highlights security risks facing major protocols. This isn’t a case of protocol vulnerability, but of social engineering targeting investor communications, which seems further exacerbated by the fact that EigenLayer didn’t use a token vesting protocol. As one of the most important protocols of this cycle, EigenLayer will continue to face intense scrutiny, meaning it must work overtime to maintain the trust of its supporters, especially as new competitors like Symbiotic, unscathed by controversy, move closer to launch.
Community Update:
— EigenLayer (@eigenlayer) October 4, 2024
In an isolated incident this morning, an email thread involving one investor’s transfer of tokens into custody was compromised by a malicious attacker.
As a result, 1,673,645 EIGEN tokens were erroneously transferred to the attacker’s address. The attacker…
