EigenLayer Loses Control of Its X account to Bad Actors, Posts Fake Airdrop Campaign to Defraud Community Members

Popular Ethereum restaking protocol, EigenLayer has lost control of its X account to bad actors. According to a report from a popular blockchain security expert

A recent string of attacks has targeted EigenLayer, a popular Ethereum restaking protocol. As per a report by ZackXBT, a renowned blockchain security expert, on Friday, the X handle of EigenLayer has been compromised.

The compromised account has been observed posting a fake airdrop campaign in an attempt to defraud members of the restaking protocol. Across three posts, the hackers have promoted a fake Season 2 stakedrop, claiming it belongs to the protocol.

However, the official Season 2 stakedrop is no longer active as the claiming period has ended. ZackXBT has reported that the attackers deleted the first post shortly after uploading it, which may indicate that they lost control of the account.

ZackXBT has urged users to avoid clicking on the malicious link.

Several reputable firms and individuals across the blockchain and crypto landscape have confirmed the attack, including DeFiLlama, PeckShieldAlert, Scam Sniffer, and Mudit Gupta, the CISO of Polygon Labs.

The breach on EigenLayer’s X account could have a significant impact on the cryptocurrency market due to the protocol’s importance in the industry.

A large number of individuals may have fallen victim to the phishing links, which could result in the depletion of their cryptocurrency holdings.

According to DeFiLlama, EigenLayer is the second largest DeFi protocol on Ethereum, with over $11.1 billion in total value locked (TVL). As a result of its massive scale, the protocol has become a prime target for hackers.

Earlier this year, EigenLayer was hit by a series of attacks that led to the theft of millions of dollars worth of cryptocurrency.

In October, hackers drained large funds from EigenLayer. On October 4, 2024, the project team announced that they were investigating a particular wallet that had made massive selling movements without approval.

According to EigenLayer, the address sold up to 1.6 million EIGNEN, the protocol’s native token, which was valued at around $5.7 million.

The following day, the protocol revealed through a community update how the hackers managed to initiate the massive sell-off.

The company stated that the bad actor had breached an email thread regarding the transfer of an investor’s assets.

However, EigenLayer emphasized that the breach did not affect its protocol and had no impact on any on-chain functionality.

Finally, the protocol assured users that their assets were safe.

Despite the turbulence, EIGEN has maintained a steady price rally, gaining up to 10% in the last 24 hours.

One of the main drivers of the gain is the market exposure EIGEN gained after top cryptocurrency exchanges Binance and Coinbase listed the token last month.

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