EigenLayer investigates unauthorized sale of EIGEN tokens, linking dumped tokens to team wallet

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EigenLayer, announced an investigation into the unauthorized sale of 1.67 million EIGEN tokens, which were apparently dumped via MetaMask at around $3.3 each.

Community update

We are investigating unauthorized selling activity associated with this wallet: (https://t.co/Pp9KoTfACp).

We will share our findings with the community as soon as possible.

— EigenLayer (@eigenlayer) October 4, 2024

The transaction, which may have violated EigenLayer’s strict one-year lockup program for employees and early investors, raised questions about token security and internal compliance.

Arkham Intelligence identified the suspicious sale, which involved a Gnosis Safe multi-signature funded wallet from EigenLayer. Conformable to blockchain analytics firm Lookonchain, the tokens were transferred from an EigenLayer team wallet before being sold through MetaMask, raising concerns about internal oversight and token security.

According to the protocol lockout policy, current and former employees, as well as early investors, are restricted from selling or staking EIGEN tokens received from Eigen Labs until September 2025.

After that, only 4% of each recipient’s tokens will be unlocked monthly, with full ownership due in September 2027. The sale appears to have violated these rules, as the EIGEN tokens were not dumped until May 10, 2024, leaving the wallet under initial value. one year imprisonment.

EigenLayer unlocked its token on October 1, propelling it into the top 100 tokens by market capitalization with a fully diluted valuation of $7.2 billion. Currently trading at $3.59, the token launch has generated significant interest. However, the unusual selling activity has since sparked internal debate within the EigenLayer team regarding token distribution and security protocols.

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