EigenLayer, a protocol built on Ethereum, introduces a concept called re-staking, where users can reuse their staked ETH or liquid staking tokens (LST) to boost the security of other applications on the network, earning extra rewards in the process.
However, a recent incident occurred where an attacker compromised an investor’s token transfer due to a breached email thread.
As a result, 1,673,645 EIGEN tokens were mistakenly transferred to the attacker’s wallet. The stolen tokens were quickly sold on a decentralized swap platform, and the proceeds were moved to centralized exchanges as stablecoins. EigenLayer has engaged with these exchanges and law enforcement, successfully freezing some of the stolen funds.
It’s important to note that the breach didn’t stem from any vulnerability in EigenLayer’s protocol or smart contracts. The broader ecosystem and on-chain functionality were not affected. EigenLayer is currently investigating the situation and will provide updates as more information becomes available, ensuring continued transparency and security for its users.
