MetaMask Pulls Plug on 17K Validators Amid $1.4B Staking Fiasco

Crypto wallet giant MetaMask has initiated the exit of 17,000 affected Ethereum validators after discovering a security incident.

The total value of staked ETH is over $1.4 billion, and the issue was confined to MetaMask's non-custodial staking operations.

Spearbit and Cantina security researcher 0xKaden posted an analysis on X, noting that block rewards from 18 MetaMask validators were paid to a suspicious tornado-funded account instead of the correct fee recipient.

The address holds only $0.46 worth of ETH, including its funding of $0.1 ETH from crypto mixer Tornado Cash.