MetaMask Exits 17,000 Validators After $1.4B ETH Staking Incident

MetaMask, a prominent crypto wallet provider, has initiated the exit of 17,000 affected Ethereum validators, representing a total of over 523,000 staked $ETH ($1.4 billion), following a security incident.

The company stated that its wallets faced 'no immediate threat' and that the issue was confined to its 'non-custodial staking operations.'

Spearbit and Cantina security researcher 0xKaden analyzed the incident and found that block rewards from 18 MetaMask validators were not paid to the correct fee recipient but instead to a Tornado Cash-funded account.

On-chain analyst Emmett Gallic spotted a sizable 133,300 $ETH transfer coming from wallets labeled 'Lubin/ConSensys,' worth $360 million a few hours before MetaMask's statement.