Following every week of drama for EigenLayer’s not too long ago launched token, Justin Solar has deposited 3.62 million EIGEN (price $14.1 million) to Binance.
Solar had beforehand claimed 5.24 million airdropped EIGEN (price $21.5 million on the time), sending it to HTX shortly after the token unlocked for buying and selling on October 1.
A pointy decline in worth following each deposits suggests a big quantity of EIGEN gross sales accompanied the strikes. After a spike to $4.10 since Solar’s most up-to-date deposit, EIGEN is at present buying and selling round 4.00, in keeping with information from CoinMarketCap.
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Whereas Justin Solar isn’t any stranger to controversy, over the previous week, EigenLayer has additionally discovered itself the main focus of criticism after a number of gaffes which have broken the mission’s popularity.
EigenLayer purports to increase Ethereum’s ‘trust network’ to different initiatives by reusing, or ‘restaking,’ already-staked ETH. Nonetheless, its personal operations look like run through a system extra akin to “trust me bro” moderately than benefiting from Ethereum’s trust-minimizing good contracts.
‘Unapproved selling’ or phishing rip-off?
Regardless of the widespread use of purpose-built vesting contracts for locked tokens, EIGEN had seemingly been distributed to buyers underneath a handshake deal to not promote earlier than an agreed-upon date.
On Friday, EigenLayer took to X (previously Twitter) to publish a ‘community update’ that it was investigating “unapproved selling activity” related to a pockets that had obtained roughly 1.67 million EIGEN.
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Later that day, EigenLayer printed one other ‘update’ informing customers that that they had fallen for a phishing e-mail, or, because it put it, “an email thread involving one investor’s transfer of tokens into custody was compromised by a malicious attacker.” Each updates had replies disabled.
As famous by X person DeFi_Made_Here, a take a look at transaction was despatched earlier than following up with the complete quantity (price nearly $6 million on the time). Given the entire quantity was certainly despatched, it seems that receipt of the take a look at was confirmed through the identical, compromised e-mail, moderately than through a second line of communication.
In September, crypto phishing scams netted roughly $46 million, in keeping with ScamSniffer, with a single incident on September 29 accounting for $32 million of the full misplaced.
Beforehand, EigenLayer has come underneath hearth for permitting buyers to money out through farming of staking rewards with supposedly locked tokens, and the potential conflicts of curiosity between EigenLayer advisors and their positions on the Ethereum Basis.
Solar within the highlight, as ever
In current months, Protos examined proof of reserves (PoR) for Solar-linked exchanges HTX, which contained a number of discrepancies in underlying belongings, and Poloniex, whose PoR was discovered to be severely missing, solely accounting for its TRON holdings.
Each exchanges had been hacked inside two weeks of one another in November final yr.
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Given his proximity to the above points, Solar’s potential involvement within the proposed rearrangements of wrapped Bitcoin has led to considerations over the token’s future credibility, with DeFi lending platform Sky (previously Maker) not too long ago voting to disable new borrows.
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