EigenLayer Price Skyrockets, Traders Do Not Doubt the $5.5 Million Scandal and Justin Sun's Selling Action

Bittime - The EIGEN token price saw an unexpected surge of 9% in the last 24 hours, despite an ongoing investigation into the sale of $5.5 million worth of unauthorized tokens. 

This scandal indicates a violation of the lock-up agreement, which prohibits employees and early investors from selling their tokens before September 2025. Although the investigation is ongoing, the market continues to show strong interest in the future of these tokens.

$5.5 Million Token Sale Under Investigation

EigenLayer is currently investigating a suspicious wallet that transferred 1.67 million $EIGEN tokens. These stolen tokens were worth approximately $5.5 million and were reportedly sold via MetaMask wallets, violating lockout rules. 

This rule was established to prevent early investors and employees from trading tokens before the specified time. The wallet, flagged by Arkham Intelligence, was connected to EigenLayer's Gnosis Safe, raising questions about the company's internal controls.

EigenLayer is currently investigating whether the sale came from an employee or an early investor. The development team has promised to release more information as they gain clarity on the situation.

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Security Breach Behind the Sale

In an update to the community, EigenLayer confirmed that these sales were the result of a security breach. This incident did not affect the ecosystem at large. 

An email chain containing unlock details to an investor was hacked, leading to the theft and sale of 1.67 million $EIGEN tokens. The perpetrator then exchanges the tokens for stablecoins and moves the funds to a centralized exchange. 

Although some funds have been frozen, authorities are working to recover more money.

EigenLayer emphasized that this incident had no impact on its core protocol or token contracts, and the system as a whole remains secure.

Justin Sun Sale Adds Pressure

Prior to this token sale controversy, Tron founder Justin Sun sold 5.37 million EIGEN tokens, earning approximately $21 million from the sale of tokens he received via airdrop. 

Sun's decision to sell so soon after unlocking on October 1 increased selling pressure in the market. He moved the proceeds into the Aave v3 protocol.

Despite experiencing various challenges, EIGEN price continues to rebound. On-chain data shows that some investors are still purchasing these tokens, believing in the long-term value of the protocol. 

As the situation develops, investors are advised to keep a close eye on EigenLayer developments and the possible impact of this investigation on the future price and stability of the EIGEN token.

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