How Is EIGEN Layer Strengthening Security After a $6M Investor Theft?

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The post How Is EIGEN Layer Strengthening Security After a $6M Investor Theft? appeared first on Coinpedia Fintech News

EIGEN Layer, an Ethereum restaking protocol, has reassured its community in a recent post that neither the platform’s infrastructure nor any on-chain protocols have been compromised since an investor lost about $6 million of tokens.

The incident happened on October 4 when the attacker integrated him into an e-mail exchange between the investor and the custodial service of EIGEN, and stole 1,673,645 EIGEN tokens.

According to the detailed account EIGEN team provided, the hacker was able to intercept the email exchange and then entice the investor to send the tokens to the wrong address. The stolen tokens were then exchanged with cryptocurrencies on a decentralise swap platform for stabilised coins. The attacker then transferred the received proceeds to other centralized exchanges in an effort to conceal the tracks.

EIGEN’S First Response and the Actions of the Relevant Authorities

When the violation was identified, specialists from EIGEN Layer immediately began communicating with several exchanges and authorities. Some of it has been effectively frozen and efforts continue to be made to regain the rest of the loot.

While admitting to the loss, EIGEN Layer has it that the attack was constrained to the investor’s email account and no other weaknesses were found in the protocols or smart contracts of the platform.

In its statement, EIGEN Layer stated strongly that the event had no linkage whatsoever with any vulnerability in its on-chain structure. The platform’s protocol remains intact, and there is no danger to token holders from the occurrence. The team also assured the community that there is corresponding action being undertaken to strengthen security protocols, especially with respect to interactions with investors.

As a result of the attack, the platform will tighten the measures to protect communication in order to avoid such actions in the future. The rest of the EIGEN community is unharmed though.