EigenLayer examines unapproved EIGEN token sale, connecting discarded tokens to group wallet

  • October 21, 2024
EigenLayer examines unapproved EIGEN token sale, connecting discarded tokens to group wallet

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Home” DeFi” EigenLayer examines unapproved EIGEN token sale, connecting disposed tokens to group wallet

by

Estefano Gomez

Oct. 4, 2024

EigenLayer examines 1.67 million EIGEN token sale, raising issues over lockup offenses and internal security.

Secret Takeaways

  • 1.67 million EIGEN tokens offered by means of MetaMask might breach EigenLayer’s lockup policy.
  • Concerns emerge on internal oversight as EigenLayer group wallet connected to unapproved token sale.

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EigenLayer, revealed an examination into an unapproved sale of 1.67 million EIGEN tokens, supposedly disposed through MetaMask at around $3.3 each.

Neighborhood Update

We are examining unapproved selling activity connected with this wallet: (https://t.co/Pp9KoTfACp).

We will share our findings with the neighborhood as quickly as possible.

— EigenLayer (@eigenlayer) October 4, 2024

The deal, which might have breached EigenLayer’ s rigorous 1 year lockup schedule for workers and early financiers, has actually raised concerns around token security and internal compliance.

Arkham Intelligence recognized the suspicious sale, which included a wallet moneyed by EigenLayer’ s multi-signature Gnosis Safe. According to blockchain analytics firm Lookonchain, the tokens were moved from an EigenLayer group wallet before being offered by means of MetaMask, triggering issues over internal oversight and token security.

According to the procedure’ s lockup policy, existing and previous workers, in addition to early financiers, are limited from offering or staking EIGEN tokens got from Eigen Labs till September 2025.

After that, just 4% of each recipient’ s tokens will open monthly, with complete vesting set for September 2027. The sale appears to have actually contravened these standards, as EIGEN tokens were just airdropped starting on May 10, 2024, leaving the wallet under the preliminary 1 year lockup.

EigenLayer opened its token on October 1, moving it into the leading 100 tokens by market capitalization, with a completely watered down appraisal of $7.2 billion. Presently trading at $3.59, the token’ s launch produced considerable interest. The uncommon selling activity has actually because triggered internal dispute within EigenLayer’ s group over token circulation and security procedures.

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