EigenLayer clarifies $5.7 million hacking incident as isolated incident

Ethereum protocol EigenLayer reassured the community that there are no vulnerabilities in the protocol after nearly $6 million in tokens were stolen from an investor. The EigenLayer team investigated an unauthorized sales activity involving a wallet ending in ‘f10D’, which sold about 1.6 million EigenLayer’s EIGEN tokens worth $5.7 million. Ether scan promptly marked the address as investigated after EigenLayer’s announcement.

EigenLayer posted a community update on October 5, explaining that the unauthorized token sale incident was a result of a hack. A malicious attacker compromised an email thread related to the token transfer of an investor, leading to the transfer of 1.6 million tokens to the attacker. The attacker sold the stolen tokens through a decentralized exchange platform and transferred stablecoins to centralized exchanges. EigenLayer stated that they have contacted the platforms and law enforcement agencies, with some funds already frozen.

Despite the hack, EigenLayer assured the community that the incident was isolated and did not affect the broader ecosystem. The team emphasized that there were no known vulnerabilities in the protocol or token contracts. EigenLayer pledged to continue investigating and provide updates as more information becomes available.

On October 1, the OWN token was unlocked and began trading on Binance at $3.85, bringing its fully diluted valuation to around $6.5 billion. CoinMarketCap ranked the token 94th by market capitalization. As of October 5, EIGEN was trading at approximately $3.38, with a fully diluted valuation of $5.6 billion, placing it 99th in the overall crypto market capitalization rankings.

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