Crypto wallet MetaMask has proactively initiated the exit of 17,000 affected Ethereum validators, representing over 523,000 staked ETH ($1.4 billion), following a security incident. Block rewards from 18 MetaMask validators were diverted to an account funded by crypto mixer Tornado Cash, totaling less than $1,000. This situation triggered a massive spike in the ETH staking exit queue, rising from 200,000 to over 700,000 ETH, extending wait times from three and a half days to nearly two weeks. The incident echoes September’s $41 million hack at Kiln, where all active ETH validators were also exited.
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