2024-10-5 02:45 |
EIGENLayer reassured its community that the platform’s infrastructure and onchain protocol remain secure after an investor lost EIGEN tokens worth roughly $6 million in an isolated email compromise on Oct. 4.
A malicious actor stole 1,673,645 EIGEN tokens by infiltrating an email thread between an investor and the platform’s custodial service. The EIGEN team reported that the attacker intercepted the communication, causing the investor to unknowingly transfer the tokens to the attacker’s address.
The stolen tokens were quickly liquidated on a decentralized swap platform, and the attacker converted the proceeds into stablecoins. These stablecoins were then transferred to centralized exchanges in an attempt to obscure the trail.
In response, the EIGEN team has collaborated with multiple exchange platforms and law enforcement, successfully freezing a portion of the stolen funds.
In its statement, EIGEN Layer stressed that the compromise was limited to the investor’s email communication and did not result from any weakness in the platform’s protocol or smart contracts.
Following its preliminary investigation of the incident, the team said:
“This incident is not connected to any onchain functionality. Our protocol remains secure, and token holders are not at risk.”
The attack has prompted the team to bolster security protocols, specifically related to communication with investors. The broader ecosystem, according to the update, remains unaffected by the incident.
The statement added:
“We continue to investigate and will share further updates as soon as we have more information.”
While the stolen funds represent a significant loss for the investor, EIGEN Layer’s swift response to freezing some of the assets signals the importance of cooperation between decentralized platforms, centralized exchanges, and law enforcement in tackling token thefts.
The EIGEN community is awaiting further details as the investigation progresses. The platform promises to take proactive steps to prevent similar incidents in the future.
The post EIGEN Layer assures users infrastructure is secure after investor loses $6M in email hack appeared first on CryptoSlate.
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