Ethereum Restaking Platform Responds to Targeted $5.7M Email Hack
EigenLayer (EIGEN), a prominent Ethereum restaking protocol, has moved quickly to address concerns after an investor lost approximately $5.7 million worth of EIGEN tokens in a targeted email attack. The protocol confirmed on October 5 that while the incident resulted in significant token theft, the core protocol remains secure and uncompromised.
The drama unfolded on October 4 when EigenLayer announced an investigation into "unapproved selling activity" from a specific wallet address. The incident involved the unauthorized sale of roughly 1.6 million EIGEN tokens, prompting Etherscan to quickly flag the suspicious wallet for investigation.
In a detailed community update, EigenLayer explained that the theft occurred when a malicious actor compromised an email thread discussing an investor's token transfer into custody. The attacker subsequently sold the stolen tokens through a decentralized exchange and moved the resulting stablecoins to centralized platforms.
"We are in contact with these platforms and law enforcement. A portion of the funds have already been frozen," EigenLayer stated in their announcement.
Despite the considerable sum involved, EigenLayer emphasized that this was an isolated incident targeting a specific investor rather than a vulnerability in the protocol itself. The team stressed that no on-chain functionality was affected, and both the protocol and token contracts remain secure.
The timing of this incident is particularly notable as it follows closely on the heels of EIGEN's token unlock on October 1. The token initially traded at $3.85 on Binance, achieving a fully diluted valuation of approximately $6.5 billion and securing the 94th position by market capitalization. However, by October 7, the token's value had declined to around $3.32, declining 18% since its token launch price.
