Ethereum

EigenLayer

DeFi

when

On October 29, Ethereum stake protocol EigenLayer (<a href="https://yellow.com/asset/eigen">EIGEN</a>) announced that it has <a href="https://coinmarketcap.com/community/articles/6720ae95cef48b067fcf5d70/">completed investigations</a> into the recent EIGEN token heist. Earlier in the month, EIGEN tokens worth $6 million were transferred from an individual crypto wallet. 
The unapproved liquidation didn't cause any impact on EigenLayer’s internal infrastructure including its token smart contracts, internal protocols and website. The Ethereum staking protocol conducted the investigation to identify vulnerabilities in the system and to analyze the protocol’s token transfer approval process. 
EigenLayer also underlined in the announcement that the unapproved liquidation wasn't due to on-chain dysfunctionality. The investigation was done to minimize such risks in the future and to create better solutions for the transfer process. 
The restaking platform is introducing new security and process measures based on the findings of the investigation. Crypto investors have been assured that the funds will remain locked until the tokens are completely transferred to the custodians. 
When EigenLayer took part in the investigation done by third parties like zeroShadow, ZachXBT, and other cryptoforensic investigators, a substantial portion of its stolen funds were frozen by law enforcement. 
Blockchain security firm SlowMist which was also part of this stolen EIGEN token investigation informed that the incident was an external malicious attack. A phishing attack on one of Eigen Labs’ investors' profile compromised the investor’s employee’s system. 
The threat actor got all the information from an email thread between Eigen Labs, the investor and the custodian. The conversation in the emails was about transferring EIGEN tokens to a custodian from the investor. 
Once the attacker got all the information they mimicked emails and posed as the custodian and the investor. With the help of the spoofed investor email, they replaced the custodial address with their own address in the thread, causing the transfer of tokens. 
The hacker had also done a test transaction before pulling the heist of 1,673,645 EIGEN tokens. EigenLayer revealed in the announcement that the stolen EIGEN tokens have been sold via a decentralized swap platform and the Stablecoins were transferred to centralized exchanges. 
The EigenLabs’ security team had to get in touch with the DeFi platform and law enforcement to freeze these funds. 
The incident caused the EIGEN token to go down 17% in the last week, as it traded at $2.85 with a market cap of $531.2 million. EIGEN reached its all-time high of $4.53 when the month started but then it went down 38%. 
As of October 31, <a href="https://coinmarketcap.com/currencies/eigenlayer/">EIGEN is at </a>$2.90, down 0.46% in the last 24 hours while its trading volume decreased 5.37% to stand at $110.27 million. The token has a market cap of $540.82 million at present.

EigenLayer’s $5.7M Hack Attacker Imitated Investor and Custodial Address

Yellow News

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