EigenLayer assured the community that the hack didn’t expose any weaknesses in its system.
This incident was an isolated case and didn’t involve the protocol itself. It’s like when one window gets broken, but the house is still strong.
Eigenlayer Confirms $5.7m Hack Poses No Protocol Risk
On October 4, EigenLayer started investigating “unapproved selling activity” related to a wallet with an address ending in “f10D.” The wallet was found to have sold about 1.6 million EIGEN tokens, worth $5.7 million. Etherscan quickly flagged this address as being under investigation.
Community Update
We are investigating unapproved selling 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
The next day, EigenLayer confirmed that a hacker was behind the suspicious activity. It turned out that the hacker had compromised an email thread related to the investor’s token transfer. By doing so, they were able to steal the investor’s tokens and sell them on a decentralized swap platform. Trading them for stablecoins that were later sent to centralized exchanges.
Even though this sounds like a big deal, EigenLayer was quick to calm the community down. They said that the hack was an isolated event and didn’t involve any flaws in their system or the token contracts. The rest of their ecosystem was completely unaffected. Their security systems held strong, but someone found a way to sneak in through the back door.
Community Update:
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…
— EigenLayer (@eigenlayer) October 4, 2024
The team didn’t sit on their hands either. They contacted both the platforms where the stolen funds were transferred and law enforcement. In a stroke of good luck, some of the stolen funds have already been frozen, which means there’s hope that more might be recovered.
EigenLayer also promised they’re still looking into the situation and will provide more updates as they learn more. It’s like they’re putting all the pieces together to figure out exactly how this happened.
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This articles is written by : Fady Askharoun Samy Askharoun
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