Security Assurance from EIGENLayer After Token Theft
On October 4, EIGENLayer reassured its user base about the integrity of its infrastructure and on-chain protocol, following a security incident that led to an investor losing EIGEN tokens worth approximately $6 million due to an email compromise.
Details of the Incident
A hacker managed to steal 1,673,645 EIGEN tokens by infiltrating an email exchange between an investor and the custodial service of the platform. The EIGENLayer team stated that the attacker intercepted the conversation, resulting in the investor mistakenly transferring the tokens to the attacker’s wallet.
Actions Taken by the EIGEN Team
Once the theft was detected, the stolen tokens were swiftly liquidated on a decentralized exchange, with the proceeds converted into stablecoins. Subsequently, these stablecoins were moved to centralized exchanges to hide the hacker’s tracks.
In response to the incident, EIGENLayer has taken the following steps:
- Partnered with various exchange platforms and law enforcement to freeze a portion of the misappropriated funds.
- Reinforced security measures concerning investor communication.
Maintaining Protocol Integrity
The EIGENLayer team emphasized that the breach was exclusive to the investor’s email interaction and did not uncover any vulnerabilities within the platform’s protocol or smart contracts.
After their initial investigation, the team stated:
“This incident is not connected to any on-chain functionality. Our protocol remains secure, and token holders are not at risk.”
Community Response and Future Plans
While this theft has resulted in a significant financial loss for the investor, the prompt action taken by EIGENLayer to freeze some of the stolen assets highlights the critical importance of collaboration between decentralized platforms, centralized exchanges, and law enforcement in combating token theft.
The EIGEN community eagerly anticipates further updates as the investigation unfolds, and the platform is committed to implementing proactive measures to prevent similar incidents in the future.