EigenLayer X Account Compromised, Used to Promote Scam Token

EigenLayer has suffered a compromise on their X (formerly Twitter) account, with the malicious actors leveraging it to promote a scam token.

Multiple sources, including blockchain security firm PeckShield, confirmed the compromise affecting the Ethereum restaking protocol and warned users to refrain from interacting with content on the platform’s official X account. 

Hacker Promotes Airdrop Allocation with Phishing Links

Typically, recent hacks have either promoted scam tokens or appealed to users to click on phishing links, and this was no different. Per an October 18 post, the attacker used the EigenLayer account to shill a fake season two airdrop allocation for eligible users.

The X update persuaded EigenLayer’s over 310,000 followers to click on an attached link to check for airdrop eligibility. The post noted that the airdrop was allocated as the protocol transitioned into “a programmatic incentive,” hence the swift distribution season.

Notably, the account posted the phishing link multiple times after the first notification, with headings like “Final Call” and “Reminder.” Furthermore, the update noted that eligible users had till 23:59 (PST) on October 19 to claim allocation.

It bears mentioning that this malicious airdrop came a few weeks after EigenLayer announced it would airdrop its EIGEN token to participants in a season two stakedrop. According to the Sep. 4 X update, the protocol would reward stakers and operators, ecosystem partners, and the community.

Another EigenLayer Attack

Meanwhile, today’s X compromise follows a suspected $5.7 million attack on the EigenLayer protocol. On Oct. 4, the Ethereum restaking platform noted it was investigating an unapproved sale involving a wallet that sold 1.6 million EIGEN for $5.7 million.

A day later, EigenLayer tied the transaction to a hack in a community update and noted that it was still investigating the attack. However, the protocol assured users that its system was secure, and the exploit didn’t affect any of its on-chain activities.

Community Update

We are investigating unapproved 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

Other Socal Media Compromises

EigenLayer’s October 18 X hack was one of the recent social media attacks used to promote tokens or phishing links. In February, hackers breached MicroStrategy’s X account and promoted an Ethereum-based scam token, MSTR. Notably, investors lost $440,000 to the pump-and-dump shitcoin.

Also, fast-food chain McDonalds lost control of its Instagram account in August. The hacker promoted a Solana-based token, GRIMACE, and reportedly rug-pulled investors for $700,000.

In a separate event, the X account of famous football star Kylian Mbappe suffered a hack, promoting Solana-based sham MBAPPE. The token surged following the post, but inflicted maximum loss on traders after it crashed.