However, the October 7 deadline applies to the exit stage rather than completed withdrawals. $ETH must go through the exit and withdrawal processes before returning to the protocol and eventually re-entering validators.
Lido said the full process could take approximately 45 days because of Ethereum’s extended validator entry queue. Consequently, the affected stake will return as validators move through those stages.
Potential Downtime Could Reduce Staking Rewards
During that transition, Lido said the exits could result in missed staking rewards and possible downtime penalties. Those penalties could be imposed if MetaMask takes affected validators offline before their exits complete.
Lido linked that upcoming step to efforts to reduce exposure to validator risks. Its disclosure described possible downtime penalties without reporting a slashing event.
To address operational disruptions, Lido pointed to its network of more than 600 operators across its staking modules. It also cited an ad hoc reserve fund holding more than 6,750 stETH. Separately, Aave’s founder said the lending protocol was monitoring the situation and reported no market impact.
Wallet Statement Draws Attention to Security Risks
MetaMask emphasized that the issue affects its validator operations rather than user-facing wallet services. Under its non-custodial model, users retain control of their assets, while external infrastructure providers handle validator operations, limiting direct exposure from such incidents.
Separately, crypto personality Richard Heart urged users to close MetaMask, warning that the incident could increase the risk of a malicious software update. However, this reflects his personal view and has not been confirmed by MetaMask or other security disclosures.
Related: MetaMask and Consensys Set to Operate as Separate Companies