MetaMask has started taking affected Ethereum validators offline after disclosing a security incident in part of its infrastructure. The company says client withdrawal keys are outside its control.
About 17,000 validators holding roughly 523,000 ETH voluntarily exited after the security incident.
Lido confirmed MetaMask Staking infrastructure was compromised, though MetaMask says it has found no immediate threat to wallets.
Ether was down 0.85% from one hour earlier after trading at $2,717 15 minutes before the move.
An Ethereum security researcher estimates about 0.36 ETH in rewards was diverted, while precautionary exits cover validators holding roughly 523,000 ETH.
MetaMask is addressing a security breach that has compromised a segment of its operational infrastructure. The wallet provider disclosed this information to users on Wednesday.
The second-largest cryptocurrency by market cap pushed beyond the $2,700 threshold on September 30 following unexpectedly mild US inflation figures. However, the upward momentum proved short-lived, with ETH settling back around $2,679.
The prediction market platform has notified the Commodity Futures Trading Commission of its decision to discontinue its Volume Incentive Program. According to the filing, the termination will take effect no earlier than October 13.
Ethereum price held above $2,700 on Oct. 1 as a wallet linked to Ethereum co founder Joseph Lubin moved 133,298 ETH, raising questions over whether the large transfer could eventually add selling pressure to the market.
Ether gained 8.77% in September 2026, while its October record since 2016 includes six gains and four losses.
The protocol said weETH was unaffected and that all funds remain safe after the security event involving an Ethereum node operator.
The precaution affects validators operated through MetaMask Staking, while the company says it has found no direct threat to its wallet product.