MetaMask described its staking operations as non-custodial and said it does not manage clients’ staking withdrawal keys. The update did not describe how the infrastructure was compromised.
Aave founder Stani Kulechov said he was monitoring the situation alongside Lido: “No impact to Aave markets and everything operating normally.”
Aave accepts wrapped stETH, or wstETH, as collateral. Its community also backed a Lido-focused lending market in 2024.
Exiting Is Not the Same as Withdrawing
Lido expects the final MetaMask-operated validators to exit by the end of Oct. 7, 2026, but said their $ETH would not yet be fully withdrawn. It expects the $ETH to return gradually, with Ethereum’s extended entry queue lengthening the route back to active staking.
Ethereum limits how much $ETH can enter or leave staking at a time. After an exit, the network must also process the transfer of the validator’s balance to its withdrawal address, a step known as a sweep, as Validator Queue explains. An exit date therefore does not mark the return of funds to active staking.
For stETH holders, the economic effect can extend beyond the exiting validators. Lido’s token documentation says staking rewards are distributed proportionally across holders, while validator penalties can reduce stETH balances.
Lido pointed to its diverse node-operator set and an ad hoc reserve fund holding more than 6,750 stETH as safeguards designed to contain disruption. It said a full investigation was underway and further updates would follow.