EigenYields Yield AVS slashed ~250M on March 29, 2026 — delegator funds redirected to vaults via redistributable slashing

General
1

Hi everyone,

I’m a delegator who lost ~1.52 stETH ($3,570) after EigenYields used redistributable slashing to redirect delegator funds to their own vaults. EigenLayer support has confirmed this. I’m posting to find other affected delegators and get answers from the team.

What happened

  • Oct 25, 2025: Deposited 1.5 ETH → Lido → received ~1.5 stETH → deposited into EigenLayer stETH Strategy → delegated to EigenYields (0x5ACCC90436492F24E6aF278569691e2c942A676d)
  • Mar 29, 2026: EigenYields Yield AVS executed a slashing event, redirecting ~250M in delegator funds to their own “vaults” via redistributable slashing
  • May 3, 2026 ~21:54 UTC: I checked app.eigenlayer.xyz — the UI showed 1.5199 stETH as “Withdrawable” with a Withdraw button available. No warning about slashing.
  • May 3, 2026 ~22:25 UTC: I completed the queued withdrawal. Transaction succeeded but returned 0 stETH (only 1 wei).

On-chain evidence

  • Withdrawal tx: 0x2eb90b13554baa1659c7c4a4cf47f4d0c9b9c85efe219d050cd19300eaa9e32e
  • Event logs show SlashingWithdrawalCompleted
  • ERC-20 transfer: EigenLayer stETH Strategy → my address → value: 1 (1 wei)
  • TransferShares: sharesValue: 0
  • Original deposit shares: 1390357920114705057 (~1.39e18)
  • Delegation tx: 0x87ad37e9dfe5a9ae19af42285ec6478fd9e51e4c25b7ba7d5628800a4adf4d63
  • My wallet: 0x8649317b5585156714b67c38Af8E8a1Eb1232dD7

EigenLayer support confirmation

In ticket T-331 on docs.eigencloud.xyz, support agent “marito” confirmed:
“EigenYields used the slashing mechanism to reallocate. Even though you queued a withdrawal, the funds were reallocated during the escrow period. That’s why you received 0 (or near 0) tokens when you triggered the withdrawal.”

The case has been escalated.

What EigenYields claims

On eigenyields.xyz/vaults:

  • A banner states “YOUR FUNDS ARE SAFE”
  • Claims funds were moved into “yield-generating strategy” using EigenLayer’s redistributable slashing mechanism
  • Vault receipt tokens promised to be claimable on Tuesday, May 12th
  • Slashing history table shows: EigenYields Yield AVS → Mar 29, 2026 → slashing reason: eigenyields.xyz/vaults → ~250M slashed assets

Why this is deeply concerning

  1. EigenYields created their own AVS (“EigenYields Yield AVS”), then used redistributable slashing to redirect all delegator funds to their own vaults — without delegator consent
  2. This matches the attack scenario from EigenLayer’s own documentation: “If an Operator itself is compromised, it may stand up its own AVS to steal user funds”
  3. There is ZERO coverage of this ~250M slashing event in any crypto media, forums, or social media
  4. The slashing reason URL points to their own website, not to any on-chain proof of misconduct
  5. EigenYields’ Twitter (@EigenYields) has been completely inactive since April 2024 — over a year of silence
  6. The operator wallet (0x5ACCC904…) has a balance of only ~$153
  7. The official EigenLayer UI (app.eigenlayer.xyz) showed my funds as “Withdrawable” on May 3, more than a month AFTER the slashing event on March 29 — giving no indication that funds had been slashed
  8. Asking delegators to “claim” tokens on May 12 could be a secondary attack vector (wallet drainer)

Scam support channels targeting victims

After my funds disappeared, I was directed to fake support channels:

  • A Telegram bot called “EigenCloud Support Ticket” — fabricated a fake “node string” error and directed me to a phishing site (smartgenprotal.web.app)
  • A Discord channel “EigenCloud || Support Desk” — sent a phishing link disguised as “FIX NODE ERROR” asking to “CONNECT MANUALLY” (= enter seed phrase)
  • These may or may not be operated by the same people behind EigenYields

Questions for EigenLayer team

  1. Is EigenLayer aware of this slashing event? Is there an active investigation?
  2. Was EigenYields’ redistributable Operator Set properly authorized?
  3. Can EigenLayer verify who controls the redistribution recipient address?
  4. Why did app.eigenlayer.xyz show 1.5199 stETH as Withdrawable on May 3 if funds were slashed on March 29? Is this a UI bug?
  5. Is it safe to interact with eigenyields.xyz/vaults on May 12, or could it be a drainer?
  6. How many delegators are affected?
  7. What protections exist for delegators against this type of abuse?

If you delegated to EigenYields and experienced the same issue, please reply here. The more voices, the faster we get answers.

Ticket: T-331 on docs.eigencloud.xyz

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(post deleted by author)

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Hello,

We announced this planned allocation of certain LSTs delegated to us via X on 13th April. All delegators wishing to withdraw from EigenYields vaults will be able to on 12 May, in 8 days time.

Feel free to reach out via our discord for help withdrawing via Etherscan.

1 Like
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Hello. I also have the same issue. I feel like we were all scammed by EigenYield. They reallocated our funds and supposedly transferred them to some vaults and we are supposed to receive “receipt tokens.” This is totally unacceptable. This should never have happened regardless of their X . com announcements that nobody reads. Please don’t scam us. This is a lot of money that we collectively lost in what we thought was “safe” defi. If this is confirmed to be a scam, defi is seriously never going to make it mainstream.

I think we should self organize and get this story publicized more. It’s surprising nobody is talking about this. Anyone wants to ping crypto news outlets for them to cover this story?

If you are reading this and also lost funds because of EigenYield’s “reallocation,” drop a note here and let’s self-organize. I would be willing to join a lawsuit against EigenYield, EigenCloud, and others that facilitated this theft.

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Update May 12: Today is the announced claim date. I’m on eigenyields.xyz/claim-rewards but no stETH receipt tokens available yet. Page shows “Next rewards in ~10h.” My vault position still shows 0 stETH vault shares. Waiting for the next rewards cycle. Will update once something changes. Has anyone else been able to claim today?

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I didn’t receive any assets on May 12th. The website told me I have to wait another 6 days. i have 2.1stEth in EigenYield, Can anyone help me with this? My address is 0x96f33f234603f3cc01b063e0563f550c504ac0b7

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Update May 13: I was able to claim my receipt tokens and complete the redemption process. stETH has been returned to EigenLayer and I have queued the unstake. Funds will be available to withdraw in 14 days. The process worked as EigenYields promised. Will confirm final withdrawal around May 27. If you are in the same situation — claim your receipt tokens on eigenyields.xyz/claim-rewards, then redeem on eigenyields.xyz/vault/steth.

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Insurance protocols in DeFi are still underdeveloped relative to the TVL they need to cover. Smart contract risk is real and most users are uninsured. This is an area that needs more innovation.

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Update: All receipt tokens have been distributed for users that were in the withdrawal queue when LSTs were allocated. Receipt tokens are now claimable via EigenLayer’s reward distribution mechanism for delegators that were not in the withdrawal queue.

The receipt tokens represent your proportional claim to the underlying LSTs.

If you wish to withdraw you first need to claim receipt tokens by visiting https://eigenyields.xyz/claim-rewards or https://app.eigenlayer.xyz.

After claiming receipt tokens you will see your balance on https://eigenyields.xyz/vaults, after clicking on your LSTs vault. You then can queue a redemption, which are processed every 24-48 hours.

Please reach out via Discord https://discord.gg/eigenyields if you need help, or start a chat via the support widget.

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Agreed. cross-chain messaging protocols are critical infrastructure. Trustless bridges are hard to build securely, but the alternative of relying on multisigs introduces centralization risks that defeat the purpose.