EIGEN Layer Reassures Community of Platform Security After Investor Loses $6M in Email Compromise

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.

An investor lost nearly $6 million in EIGEN tokens in an email compromise on Oct. 4, prompting a response from EIGEN Layer, multiple exchange platforms and law enforcement.

The stolen tokens were quickly liquidated on a decentralized swap platform and the proceeds were converted into stablecoins, which were then sent to centralized exchanges in an attempt to hide the trail.

However, the EIGEN team said 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.

“This incident is not connected to any onchain functionality. Our protocol remains secure, and token holders are not at risk,” the team said following its preliminary investigation of the incident.

The team is bolstering security protocols, specifically related to communication with investors, and said the broader ecosystem is remaining largely unaffected by the incident.

“We continue to investigate and will share further updates as soon as we have more information,” the statement added.

While the stolen funds are a significant loss for the investor, EIGEN Layer’s swift response to freezing some of the assets highlights 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 promised to take proactive steps to prevent similar incidents in the future.

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