MetaMask suspends Ethereum staking after 0.36 ETH diversion: 523,000 ETH placed on preventive exit

MetaMask immediately suspended its Ethereum staking services after a security incident diverted approximately 0.36 ETH from block production payments, according to CoinDesk. The company stated that no immediate threat was detected to user wallets but deemed it necessary to remove affected validators to prevent further impact. This decision was made on Wednesday, October 1, 2026, as the Ethereum network continues to secure tens of thousands of transactions per second.

Security Incident: 0.36 ETH Diverted from Block Production Payments

Ethereum security researcher Kaden, known by the pseudonym Kaden, reported on X that 18 out of 19 validators exploited by MetaMask sent transaction fee payments to an unexpected address, leading to the estimated diversion of 0.36 ETH. Kaden clarified that the issue concerns block production payments, distinct from the staked capital, and that the diverted volume represents a negligible fraction of the network's daily rewards. CoinDesk reported that no slashing evidence—penalties that destroy part of the stake—has been observed so far.

Approximately 17,000 validators, or 523,000 ETH, placed on preventive exit

Based on Kaden's analysis, MetaMask appears to have proactively removed around 17,000 validators, corresponding to approximately 523,000 ETH being taken out of the staking process. These figures have not been officially confirmed by MetaMask, which has not provided additional details on the infiltration method or the exact scope of the compromise. The mass exit of validators represents a significant portion of the available staking supply, but the underlying capital remains intact, with stakers still able to retrieve their ETH once the process is complete.

Loss of rewards and 45-day exit period

Lido, the primary Ethereum pooling service collaborating with MetaMask, warned that validators being withdrawn may miss their rewards during the exit phase, which could last up to approximately 45 days before re-entry is permitted. This period includes the time needed for the network to rebalance validator distribution and ensure continuous block production. StETH holders—the token representing shares in the Lido pool—do not need to take immediate action but will see their yields reduced as long as their validators remain inactive.

Lido Warns of Lost Rewards, No Slashing Reported

In an official statement, Lido emphasized that affected validators would not face slashing but could lose revenue from transaction fees during the exit period. The company reminded stakeholders that Ethereum's staking mechanism separates capital deposits from reward payments, meaning a diversion of fee recipients does not impact the principal users can retrieve. CoinDesk reported that Lido does not plan to compensate for lost rewards but encourages stakers to monitor their positions via the platform's dashboard.

French investors: alternative options after MetaMask suspension

French investors who were using MetaMask for staking must now consider alternative solutions compatible with PEA or regular brokerage accounts, such as staking services offered by exchanges or non-custodial staking solutions. The crypto wealth section on TradeXora provides a comparison of staking providers that allow full control of private keys while offering exposure to Ethereum rewards. In the absence of MetaMask, diversifying access points to the network becomes a prudent practice to mitigate similar compromise risks in the future.