EigenLayer Email Phishing Unauthorized Transfer
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EigenLayer is another restaking platform, which offers Ethereum holders the ability to earn more staking rewards on their already staked Ethereum. The team had developed an elaborate token vesting schedule for their team and investors, and was in the process of performing a distribution of tokens. It appears that attackers impersonated one of the investors and swapped their Ethereum address for another Ethereum address, granting them the receipt of the newly minted Eigen tokens. They were not very eager to comply with the token vesting schedule and much prefered to cash out their ill gotten gains rather quickly. There is some speculation that the attack was performed by an insider, but no hard evidence as of yet.[1][2][3][4][5][6][7][8][9][10][11][12]
About EigenLayer
"EigenLayer is a protocol built on Ethereum that introduces restaking, a new primitive in cryptoeconomic security. This primitive enables the reuse of ETH on the consensus layer. Users that stake ETH natively or with a liquid staking token (LST) can opt-in to EigenLayer smart contracts to restake their ETH or LST and extend cryptoeconomic security to additional applications on the network to earn additional rewards."
The Reality
"In a plot twist worthy of a B-grade hacker flick, their sophisticated token distribution strategy amounted to "send us an email with your ETH address."
What Happened
"[A] digital Danny Ocean waltzed right in, changed an address and walked away with a cool 1.67 million EIGEN tokens."
| Date | Event | Description |
|---|---|---|
| October 2nd, 2024 11:19:35 PM MDT | Test Transaction Performed | The EigenLayer team does a test transaction to the provided Ethereum address. |
| October 4th, 2024 1:03:47 AM MDT | Real Token Transaction | The EigenLayer team does the real transfer of 1,673,644.66828466 Eigen tokens to the phishing wallet. |
Technical Details
This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?
Total Amount Lost
The total amount lost has been estimated at $5,995,000 USD.
How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?
Immediate Reactions
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?
Ultimate Outcome
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?
Total Amount Recovered
There do not appear to have been any funds recovered in this case.
What funds were recovered? What funds were reimbursed for those affected users?
Ongoing Developments
What parts of this case are still remaining to be concluded?
Individual Prevention Policies
No specific policies for individual prevention have yet been identified in this case.
For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.
Platform Prevention Policies
Policies for platforms to take to prevent this situation have not yet been selected in this case.
For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.
Regulatory Prevention Policies
No specific regulatory policies have yet been identified in this case.
For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.
References
- ↑ Rekt - Eigenoops (Accessed Oct 11, 2024)
- ↑ https://defillama.com/protocol/eigenlayer#information (Accessed Oct 11, 2024)
- ↑ @eigenlayer Twitter (Accessed Oct 11, 2024)
- ↑ Arkham (Accessed Oct 11, 2024)
- ↑ @lookonchain Twitter (Accessed Oct 11, 2024)
- ↑ Address 0xa7a1c66168cc0b5fc78721157f513c89697df10d | Etherscan (Accessed Oct 11, 2024)
- ↑ Ethereum Transaction Hash (Txhash) Details | Etherscan (Accessed Oct 11, 2024)
- ↑ @eigenlayer Twitter (Accessed Oct 11, 2024)
- ↑ Token Transfer | Etherscan (Accessed Oct 11, 2024)
- ↑ Home - EigenLayer (Accessed Oct 11, 2024)
- ↑ Ethereum Transaction Hash (Txhash) Details | Etherscan (Accessed Oct 11, 2024)
- ↑ Intro to EigenLayer | EigenLayer (Accessed Oct 11, 2024)