EigenLayer investigates unauthorized EIGEN token sale, linking dumped tokens to team wallet
Key Takeaways
- 1.67 million EIGEN tokens sold via MetaMask may breach EigenLayer’s lockup policy.
- Questions arise on internal oversight as EigenLayer team wallet linked to unauthorized token sale.
EigenLayer, announced an investigation into an unauthorized sale of 1.67 million EIGEN tokens, reportedly dumped through MetaMask at around $3.3 each.
The transaction, which may have violated EigenLayer’s strict one-year lockup schedule for employees and early investors, has raised questions around token security and internal compliance.
Arkham Intelligence identified the suspicious sale, which involved a wallet funded by EigenLayer’s multi-signature Gnosis Safe. According to blockchain analytics firm Lookonchain, the tokens were transferred from an EigenLayer team wallet before being sold via MetaMask, sparking concerns over internal oversight and token security.
According to the protocol’s lockup 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 unlock monthly, with full vesting set for September 2027. The sale appears to have contravened these guidelines, as EIGEN tokens were only airdropped beginning on May 10, 2024, leaving the wallet under the initial one-year lockup.
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’s launch generated significant interest. However, the unusual selling activity has since sparked internal debate within EigenLayer’s team over token distribution and security protocols.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Institutions are looking for ‘1000x’ opportunities in crypto: Coinbase
Coinbase Institutional’s David Duong looked at how crypto performed in January and explains where crypto’s growing
Bitwise CIO says Bitcoin’s four-year cycle may be broken by Trump’s new crypto executive order
Sei Foundation launches $65 million DeSci venture fund 'Sapien Capital'
Sei Foundation has launched Sapien Capital, a $65 million venture fund to back DeSci startups building on its Layer 1 Sei blockchain.The foundation has fully committed the $65 million, with no external capital involved, Justin Barlow told The Block.
The Daily: Trump Media approves Truth.Fi launch and crypto investments, Robinhood teases bitcoin futures trading and more
Trump Media & Technology Group has launched a fintech venture called Truth.Fi, aiming to invest up to $250 million in bitcoin, similar cryptocurrencies or crypto-related securities, ETFs and other financial assets.Popular retail platform Robinhood teased the launch of bitcoin, ether, oil and gold futures trading on Wednesday alongside S&P 500, USD and EUR futures, facilitated by the CME Group.