Compass Investments

There is no evidence that MetaMask wallets have been compromised, Joseph Lubin reassures users.

– Based on the findings of the ongoing investigation, there is currently no indication that MetaMask wallets or the funds held within them have been affected. You store and manage your own keysthats how self-custody works. With MetaMask, you have full control over your finances.

The incident first came to light on September 30, and the team stated that it had taken preventive measures, including shutting down its validators.

In a second update published on October 1, the team confirmed that it continues to investigate and respond to the situation, which affected part of its infrastructure.

Aside from shutting down the validators, few details about the security incident were provided.

The update that Lubin released on Friday was already the third. Responding to questions about the lack of available information, he noted:

We do not discuss the details of the current incident publicly, but we promptly notify partners and stakeholders as soon as the situation becomes clearer.

How will this affect the ETH staking market?

For now, speculation suggests the issue may have been related to the validator infrastructure. According to Lubin, taking the validators offline reduced residual operational risk but did not result in the exposure of underlying ETH assets.

Lido confirmed that it has exited the MetaMask validators, and it will take time to re-enter.

Linea, an Ethereum L2 solution created by ConsenSys, also announced similar actions.

As a precautionary measure following the MetaMask staking incident, the affected validators powering the Yield Boost vault are being exited. Funds and control over the staking vault itself remain unaffected.

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The Linea update was released on October 2, which once again indicates that the security issue was related to the MetaMask staking system.

According to estimates by Ethereum researcher Kaden, approximately 17,000 validators left the system, representing a total of about 513,000 ETH. He added that as of October 1, more than 800 validators potentially at risk had not yet left the system.

However, data from Validator Queue showed that about 10,500 validators exited during this period (the number decreased from 884,000 to 873,000). This corresponds to approximately 336,000 ETH, and this total figure may not be entirely attributable to withdrawals via MetaMask.

The volume of ETH in the withdrawal queue (red) had tripled by October 1from 205,000 ETH to 773,000 ETH. The following day, it jumped to 850,000 ETH, indicating a surge likely related to the MetaMask incident. However, the price of ETH remained stable and consolidated below the $2,800 level during this period.

According to Joseph Lubin, customer funds were not affected by the security incident at MetaMask.

The volume of ETH awaiting withdrawal from staking increased fourfold during the incident, reaching 800,000 ETH.

Benjamin Njiri is a crypto analyst and reporter for AMBCrypto who focuses on technical analysis and trends in emerging markets. With a background in telecommunications engineering and energy systems, he uses data analysis to filter out market noise and decipher blockchain data. His work features clear, data-driven insights that help readers navigate the cryptocurrency markets with confidence.

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