On October 4th, the team behind Eigenlayer announced that it was investigating unauthorized selling activity linked to a specific wallet. The wallet had sold approximately 1.6 million EIGEN tokens, valued at around US$5.5 million.

Eigenlayer, a middleware solution that enhances Ethereum’s security by allowing users to restake tokens to back decentralized applications (Dapps) and layer-2 solutions, recently gained significant traction after its token, EIGEN, was airdropped to early users, boosting its market cap to over US$600 million within a week.

In an update on October 5th, Eigenlayer provided further details, revealing that the incident involved the compromise of an email thread tied to one investor’s token custody transfer. A malicious attacker intercepted the process, leading to the erroneous transfer of 1,673,645 EIGEN tokens to the attacker’s address. The stolen tokens were then sold via a decentralized swap platform, with the proceeds converted to stablecoins and transferred to centralized exchanges.

Eigenlayer confirmed that the compromise did not affect the broader ecosystem or reveal any vulnerabilities in the protocol or token contracts, as the attack was unrelated to any on-chain functionality. Law enforcement and exchange platforms have frozen a portion of the stolen funds, and the investigation is ongoing.