EigenLayer Faces Security Scrutiny After Hacker Steals 1.67 Million Tokens Through Email Scam
- EigenLayer faces scrutiny after a hacker bypasses security, leading to the unauthorized sale of $5.5 million in tokens.
- The breach highlights internal control issues at EigenLayer, raising concerns about compliance with token lockup policies.
- Hacker exploits email vulnerability, hijacking a wallet address and laundering 1.67 million EIGEN tokens through exchanges.
EigenLayer has launched an investigation after the unauthorized sale of 1.67 million EIGEN tokens, valued at $5.5 million. The sale, conducted via MetaMask , violated the company’s strict token lockup policies for employees and early investors, sparking concerns over security and compliance.
Blockchain analytics firm Lookonchain discovered that the tokens were transferred from an EigenLayer team wallet before being sold. Arkham Intelligence identified the questionable transaction, which utilized a wallet supported by EigenLayer’s multi-signature Gnosis Safe. This event has sparked inquiries about the internal monitoring systems and security procedures of the company.
Breach of EigenLayer Lockup Policy Raises Alarms
EigenLayer enforces a strict lockup policy that restricts employees and early investors from selling or staking tokens until September 2025. According to the policy, only 4% of each recipient’s tokens will unlock monthly, with full vesting scheduled for September 2027. The tokens involved in the unauthorized sale were part of a May 2024 airdrop, making the sale a clear violation of these terms.
This breach coincided with the platform unlocking its token on October 1, pushing EIGEN into the top 100 tokens by market capitalization. Following the release, the token’s fully diluted valuation surged to $7.2 billion, making the timing of the sale particularly concerning for investors.
Read CRYPTONEWSLAND on google newsEmail Hijack Leads to Token Theft
EigenLayer disclosed that the unauthorized sale was part of a larger scheme involving a hacker who hacked an investor’s email. The hacker replaced the intended custodian wallet address with their own, leading to the fraudulent transfer of 1,673,645 EIGEN tokens. Blockchain security firm SlowMist revealed that the stolen tokens were laundered through platforms like HitBTC and converted into USDC and USDT.
EigenLayer’s investigation into the security breach is ongoing, with efforts focused on strengthening internal controls. In addition, the company is working to reassure investors and prevent future security incidents.
disclaimer read moreCrypto News Land, also abbreviated as "CNL", is an independent media entity - we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Ex-Goldman Sachs Exec Shares Positive Outlook on XRP Amid Legal Challenges
Cardano Hits $1 for the First Time in Two Years, Signaling Strong Market Momentum
XRP Soars as Ripple CEO Applauds Trump’s Treasury Secretary Nominee
Trump and Wall Street: How long will the love affair last?
Share link:In this post: Wall Street loved Trump’s win at first—stocks jumped, Bitcoin soared, and borrowing costs hit rock bottom, but some sectors started cracking fast. Tax cuts and deregulation made financial and energy stocks shoot up, but tariffs and plans to deport workers freaked out economists and markets. Tariffs mean higher prices for Americans, and even Walmart’s warning it’ll have to raise prices if Trump pushes through with his trade war.