EigenLayer reassures security after $5.5M token theft

EigenLayer (CRYPTO:EIGEN), an Ethereum (CRYPTO:ETH) restaking protocol, has confirmed that $5.5 million worth of its tokens were mistakenly transferred to a malicious attacker.  

In a statement posted on X, EigenLayer explained that an email thread related to an investor’s token transfer was compromised, leading to the erroneous transfer of 1,673,645 EIGEN tokens.  

The attacker quickly swapped the tokens for stablecoins and transferred the proceeds to centralized exchanges.  

EigenLayer stated that some of the sale proceeds have been frozen with the help of law enforcement, and they are working closely with affected platforms.  

Despite the attack, EigenLayer clarified that no vulnerabilities were found in its protocol or token contracts.  

"This compromise was not related to any on-chain functionality," the protocol stated.  

The incident occurred on Friday, raising suspicions among traders who initially speculated that an insider might have violated the token lockup period, given that the sale took place less than a year after the May 10, 2024 airdrop.  

EigenLayer promptly launched an investigation into the unauthorized sale, which ultimately revealed the attack.  

To address concerns, EigenLayer has implemented a freeze on token sales from current and former employees, prohibiting them from staking any EIGEN tokens received from Eigen Labs until at least September 30, 2025.  

EigenLayer continues to collaborate with law enforcement and affected platforms to recover the stolen funds and ensure the security of the protocol.  

At press time, the Eigenlayer price was $3.34.