• PeckShieldAlert reports $5.87M in stolen EIGEN tokens, swiftly swapped for USDC and partially traced to HitBTC and Kraken.
• EigenLayer confirms the attack stemmed from an investor’s email hack, assuring no vulnerabilities within its core protocol.
• EIGEN token drops to $3.38 following the October 1 unlock, placing its market capitalization at 99th overall.

Ethereum restaking protocol EigenLayer is investigating an incident in which $5.87 million worth of tokens were stolen from an investor. PeckShieldAlert, a well-known blockchain security firm, reported that the stolen $EIGEN tokens were quickly swapped for $USDC. Most of the stolen funds have been traced to the centralized exchange HitBTC, with a smaller portion, around $5K $USDC, sent to Kraken.

Attack Originates from Investor’s Email Compromise

EigenLayer revealed on October 5 that the attack was traced to a compromised email thread related to an investor’s token transfer into custody. A malicious actor gained unauthorized access to the investor’s 1.674 million EIGEN tokens, worth approximately $5.87 million. The attacker used a decentralized swap platform to exchange the stolen tokens for stablecoins, later transferring the funds to centralized platforms.

Despite the severity of the breach, EigenLayer emphasized that the hack was isolated and did not involve any vulnerabilities within its core protocol or token contracts. The restaking platform assured users that the incident did not stem from any on-chain issues and does not impact the broader ecosystem.

Frozen Funds and Ongoing Investigation

Following the attack, EigenLayer stated that it had contacted relevant platforms and law enforcement agencies. Notably, some of the stolen funds have been frozen as part of the investigation. EigenLayer’s team remains in communication with centralized exchanges involved in the transfer and is working to secure the remaining funds.

EigenLayer also reassured its community that further updates would be provided once new information becomes available. The platform highlighted that the attack did not affect any on-chain functionality or broader security protocols.

Impact on EIGEN Token Price and Market Ranking

The hack took place just days after the unlocking of the EIGEN token on October 1. Following the unlock, the token initially traded at $3.85, giving it a fully diluted valuation of $6.5 billion. As of October 5, the token has dropped to around $3.38, with its market capitalization placing it at 99th position overall.