Ethereum's restaking protocol, EigenLayer, has reassured its community that its system remains secure despite a recent attack that led to the theft of $5.7 million worth of tokens. The incident, which took place on October 4, involved a compromised wallet that sold 1.6 million of the platform’s EIGEN tokens. While the hacker managed to siphon the funds, EigenLayer has confirmed there are no vulnerabilities within its protocol.

The investigation into the wallet activity revealed that the hack stemmed from a compromised email thread between an investor and the platform, not a flaw in EigenLayer’s blockchain technology. The stolen tokens were sold through a decentralized swap platform, and some funds have been frozen by authorities and centralized exchanges involved in the transfers.

EigenLayer emphasized that the attack was an isolated event and did not compromise its protocol or token contracts. The team continues to investigate the situation and promises to keep the community informed as more details emerge.

Interestingly, the hack occurred just days after EigenLayer’s token unlocked and began trading on Binance at $3.85, with a fully diluted valuation of $6.5 billion. By October 5, the token’s value dipped to $3.38, placing it 99th in the market capitalization rankings, according to CoinMarketCap.

EigenLayer remains vigilant and assures users that their investments are safe, with no on-chain vulnerabilities affecting the protocol. The situation is being closely monitored, with further updates expected as the investigation unfolds.

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