MetaMask Staking Removes Validators from Lido Protocol After Security Incident

MetaMask Staking has taken measures to protect its clients' assets after discovering a security incident involving its Ethereum validators. The company, formerly Consensys Staking, has removed its validators from Lido protocol as a precautionary measure.

This move may result in some loss of rewards for the affected validators and could lead to penalties if they go offline temporarily to reduce potential network fines. The last batch of validators is expected to complete their exit by October 7, 2026, but funds will not be fully withdrawn until then.

Lido protocol assures stETH holders that no action is required on their part. MetaMask Staking's withdrawal of its Ethereum validators from Lido is estimated to return ETH ($2,688.52) to the protocol over a period of 45 days or less once the exit and withdrawal process is complete.

Lido notes that staking operations are non-custodial in nature and that MetaMask does not manage clients' withdrawal keys on their behalf. The protocol has implemented measures such as a reserve fund holding more than 6,750 stETH to mitigate potential disruptions to its normal functioning.