EigenLayer (EIGEN) Price Skyrockets 9% Despite Investigation Into Allegedly Unauthorized $5.5M Token Sale

EigenLayer is currently tracking a wallet that has transferred close to 1.67 million EIGEN tokens, worth approximately $5.5 million.

EigenLayer (EIGEN) price showed resilience on October 4 despite an investigation into the alleged unauthorized trading of $5.5 million in EIGEN tokens. While this incident raised concerns, especially given the recent sell-off by Tron founder Justin Sun, EIGEN price managed to climb 9% in 24 hours.

EigenLayer Probes Suspicious $5.5M Token Sale

EigenLayer is tracking a wallet that transferred close to 1.67 million EIGEN tokens, valued at around $5.5 million. The sale reportedly occurred through MetaMask, which could be in violation of EigenLayer’s one-year lockup agreement.

This lockup prevents current and former employees and early investors of EIGEN from transferring or staking any of their EIGEN tokens before September 2025.

Arkham Intelligence identified the suspicious wallet, which was funded by EigenLayer’s multi-signature Gnosis Safe, raising questions about internal control and security measures. EigenLayer’s team is investigating to determine if an employee, former employee or early investor sold the tokens.

“We are currently looking into unapproved selling activity related to this wallet and will update the community with the details when possible,” the EigenLayer team tweeted on X (formerly Twitter).

Community Update: Incident Details

In its community update, EigenLayer explained that the suspicious sale resulted from a single incident of security compromise.

One of the investor's emails, which contained instructions for transferring tokens to custody, was compromised by an attacker. The attacker managed to transfer 1,673,645 EIGEN tokens to another account and sell them through a decentralized swap platform.

The stolen funds were then swapped for stablecoins and eventually sent to centralized exchanges.

“We are in contact with these platforms and law enforcement. A portion of the funds have already been frozen,” the EigenLayer community update stated.

The update also highlighted that the broader ecosystem remained secure. “There is no known vulnerability in the protocol or token contracts, and this compromise was not related to any onchain functionality.”

Justin Sun’s Involvement and Token Sell-Off

This investigation comes shortly after Tron founder Justin Sun sold a significant amount of his EIGEN tokens.

According to reports, Sun sold 5.37 million EIGEN tokens at an average of $4.03 per token, netting him an estimated $21 million in profits from tokens he received in airdrops via EigenLayer’s Ethereum ReStaking track.

Sun's decision to sell the majority of his tokens a day after they became fully tradeable on October 1st created more selling pressure, which raised concerns about the price fluctuations.

After selling his EIGEN tokens, Sun proceeded to deposit the proceeds in USDT into the Aave v3 protocol, an Ethereum-based decentralized money market.

EIGEN Price Skyrockets Despite Investigation

Despite the unauthorized token sale and Justin Sun’s recent sell-off, EIGEN price has rebounded with a 9% increase in the last 24 hours.

Investors are considering the potential long-term value of EigenLayer’s protocol, which is one of the most innovative solutions in Ethereum’s DeFi ecosystem.

Since its October 1 unlocking event, the token has experienced increased volatility, initially dropping 23% from recent highs.

However, on-chain data suggests that some investors are accumulating EIGEN tokens, anticipating future growth. For instance, one whale purchased over 31,000 EIGEN tokens after the sell-off, indicating confidence in the protocol despite the recent setbacks.

EigenLayer has quickly become a major participant in Ethereum’s DeFi landscape with its pioneering "restaking" model, enabling users to reuse their staked ETH to secure decentralized applications.

As of early October, the protocol’s total value locked (TVL) is $10.8 billion, placing it in the top three DeFi platforms, alongside Lido and Aave.

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