MetaMask Staking Exits Lido Validators, Expected to Take Up to 45 Days to Gradually Recover
TechFlow reports that on October 1, liquid staking protocol Lido announced that MetaMask Staking (formerly Consensys Staking) has taken precautionary measures to protect customer assets associated with the Ethereum validators it operates following an infrastructure breach investigation, including exiting the Ethereum validators from the Lido protocol.
Lido noted that this action could lead to partial losses in staking rewards; additionally, if validators are taken offline shortly to reduce potential slashing risks, downtime penalties may also apply. These validators have already begun the exit process, with the final batch expected to complete their exits before October 7, 2026, although full withdrawals will not be processed at that time.
Lido clarified that stETH holders do not need to take any action. The ETH withdrawn from validators operated by MetaMask Staking is expected to gradually return to the protocol as validators complete the exit, withdrawal, and re-entry cycle. Due to prolonged queue times, the entire process is expected to take up to roughly 45 days.
Lido cautioned that the relevant staking operations operate on a non-custodial basis, with MetaMask not managing withdrawal keys for its clients. The Lido protocol’s diverse set of node operators and additional security measures, including a temporary reserve exceeding 6,750 stETH, are designed to contain and mitigate any impact on routine protocol functionality. The comprehensive investigation remains ongoing, and further developments will be announced separately.
