On Wednesday, MetaMask began withdrawing validators managed by MetaMask Staking from the Lido protocol as part of an investigation into a security incident affecting part of its infrastructure. Lido expects the withdrawal to be completed by October 7.

No Immediate Threat Detected to MetaMask Wallets

The company stated that it is responding to the ongoing threat internally, working with external partners and security consultants, and is not disclosing the nature of the incident. According to MetaMask, there is no immediate threat to MetaMask wallets. The measures taken relate to validators involved in non-custodial staking operations.

Lido: Potential Missed Rewards and Downtime Penalties

Lido separately clarified that MetaMask Staking began the withdrawal of its Ethereum validators from the protocol on the same day, with the final exit of affected validators expected by the end of October 7. This precaution may result in missed staking rewards and possible downtime penalties. According to Lido Finance developer Will Shannon, ETH withdrawn from MetaMask Staking validators will be returned to the protocol gradually as the exit, withdrawal, and re-entry cycles complete; due to a lengthened queue, this process may take up to 45 days.