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Cryptocurrency News Articles
EigenLayer Hack: Incident Details and Response
Oct 07, 2024 at 05:03 pm
The Ethereum restaking protocol EigenLayer recently faced a security breach, leading to the theft of approximately $5.7 million in tokens.
A cyberattack on the Ethereum restaking protocol EigenLayer resulted in the theft of about $5.7 million in tokens, highlighting the increasing prevalence of crypto exchange hacks.
On October 4, EigenLayer’s team noticed suspicious selling activities linked to a specific wallet address. The wallet, ending in “f10D,” was found to have sold around 1.6 million EIGEN tokens, sparking an investigation by the team. A day later, EigenLayer revealed that the unauthorized selling was indeed the outcome of a cyberattack.
The attackers had compromised an email thread regarding an investor’s token transfer, enabling them to divert the tokens to their wallet.
“The attacker sold these stolen EIGEN tokens via a decentralized swap platform and transferred stablecoins to centralized exchanges,” the statement from EigenLayer explained.
EigenLayer Responded Quickly to the Hack
In response to the hack, the EigenLayer team took immediate steps to minimize the damage. They contacted relevant platforms and law enforcement to coordinate efforts for recovery. According to their update, some of the stolen funds have already been frozen.
However, EigenLayer stressed that the cyberattack on their platform did not expose any vulnerabilities within their protocol. They assured the community that their ecosystem remained intact and unaffected by the incident.
“This incident was isolated and does not impact our broader ecosystem,” EigenLayer stated, emphasizing that the integrity of their protocol and token contracts remained secure.
The team clarified that the cyberattack was solely due to external factors and not related to any functionality within their on-chain operations.
The incident occurred as EIGEN tokens were experiencing a market correction. On October 1, following the unlocking of EIGEN tokens, the price was set at $3.85 on Binance, which translated to a fully diluted valuation (FDV) of approximately $6.5 billion, securing a spot in the top 100 market rankings.
However, by October 5, following the cyberattack on EigenLayer, the token’s value had dropped to around $3.38, leading to an FDV of $5.6 billion and a subsequent decline to the 99th position in market capitalization.
The EigenLayer community expressed mixed reactions to the incident, highlighting the need for tighter security measures in the rapidly evolving landscape of cryptocurrency.
Meanwhile, the EigenLayer team continues to investigate the incident and aims to keep their users updated. They intend to provide clarity and assurance to rebuild trust within the community following the data breach at EigenLayer.
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