EigenLayer Says Unauthorized Selling Was an 'Isolated Incident', But Critics Still Have Concerns - Decrypt
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EigenLayer Says Unauthorized Selling Was an 'Isolated Incident', But Critics Still Have Concerns
EigenLayer community members have expressed concerns he EigenLayer team is still dealing with fallout from "unapproved selling activity" linked to a wallet that unloaded about $5.5 million (or 1,673,645)
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Summary
- 🚨 **Unauthorized Selling Incident**: EigenLayer faced a security breach where a wallet sold approximately $5.5 million worth of EIGEN tokens due to a compromised email thread.
- 🔐 **Attack Method**: The attacker misled the EigenLayer team into transferring tokens by using a test transaction, then sold the stolen tokens through a decentralized swap platform.
- 💰 **Funds Recovery Efforts**: EigenLayer is working with law enforcement, and some of the stolen funds have already been frozen, but the attacker made around $3.1 million in USD Coin (USDC) from the sales.
- ⚠️ **Community Concerns**: Despite EigenLayer's claims that the incident was isolated and not due to protocol vulnerabilities, community members are skeptical about the lack of a vesting contract for token transfers.
- 🔍 **Ongoing Fallout**: The incident has raised questions about security practices within the EigenLayer team and the overall trust in the project's management.
Top Highlights
- EigenLayer Says Unauthorized Selling Was an 'Isolated Incident', But Critics Still Have Concerns EigenLayer community members have expressed concerns
- he EigenLayer team is still dealing with fallout from "unapproved selling activity" linked to a wallet that unloaded about $5.5 million (or 1,673,645) of its EIGEN token late last week. "In an isolated incident this morning, an email thread involving one investor’s transfer of tokens into custody was compromised by a malicious attacker," the Eigen...
- "The attacker sold these stolen EIGEN tokens via a decentralized swap platform and transferred stablecoins to centralized exchanges," the team explained.
- Blockchain data shows that the wallet executed the sale using MetaMask's “Swap” feature. While the tokens were worth about $5.5 million at the time, the attacker appears to have made less than $3.1 million in USD Coin (USDC) for its sales.
- The team behind Ethereum staking protocol EigenLayer said it is collaborating with law enforcement and that a portion of the stolen funds has already been frozen. The team assured the community that the incident would not affect the broader ecosystem and clarified that it was not due to any vulnerability in the protocol or token contracts. However...
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