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Citigroup forecasts Bitcoin will reach $113,000 by the end of 2026, up from its previous $82,000 target. The bank also raised its Ethereum year-end target to $3,028 from $2,240, citing recovering ETF demand, increased crypto activity, and improving financial conditions. Ad Ad Citi Sees Steadier Crypto Inflows Ahead Citi estimates that approximately USD 5 billion

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MetaMask is investigating an undisclosed security incident affecting part of its infrastructure, but it says it has found no immediate threat to user wallets.

The crypto wallet provider said it is working with external security advisers and partners to contain and fix the issue.

MetaMask Exits Affected Validators

As a precaution, MetaMask is exiting affected validators linked to its non-custodial staking operations. The company asserted that it does not control withdrawal keys for client stakes. This means customer assets remain under the control of the respective clients.

Lido separately confirmed the infrastructure compromise and revealed that precautionary steps were taken to protect client assets related to its operated Ethereum validators.

“These steps include exiting its Ethereum (ETH) validators in the Lido protocol, and will likely incur foregone rewards as well as possible downtime penalties should validators be taken offline in the near future to reduce risks related to potential network penalties. Relevant validators have begun the exit process, with the final validators expected to be exited (but not fully withdrawn) by the end of October 7th, 2026.”

The incident comes as a large amount of ETH was moved from a wallet linked to Ethereum co-founder Joseph Lubin. Blockchain tracker Lookonchain reported that the wallet transferred 133,298 ETH, worth over $356 million, to a new wallet. The transfer took place around the same time as MetaMask’s security announcement. However, there is no information showing that the ETH movement is connected to the MetaMask incident.

Potential Risks

There’s already some back-and-forth over how serious the incident really is. For instance, Andy Cavanaugh of The Rollup suggested the situation could be “far worse than people are expecting,” including the possibility of ETH being stuck through a liquid staking provider.

Security researcher Taylor Monahan wasn’t buying it. She called the claim a “crackhead set of assumptions” while arguing that MetaMask’s response looks more like a normal security precaution.

The disruption comes just weeks after Consensys announced a major split that will turn MetaMask into a separate company focused on consumer finance. The restructuring is expected to be completed by the end of 2026, ending more than a decade of MetaMask operating under the Consensys umbrella.

The post MetaMask Confirms Security Incident and Begins Validator Exits to Protect Client Assets appeared first on CryptoPotato.

• MetaMask Staking has started exiting its Ethereum validators from Lido following a security incident affecting part of MetaMask’s infrastructure.
• The final validators are expected to complete their exit by October 7, 2026, according to Lido.

MetaMask is responding to a security incident affecting part of its infrastructure, and while the wallet provider has been clear that no immediate threat to user wallets has been identified, the precautionary steps it’s taking are significant enough to pay attention to.

As a direct response to the incident, MetaMask Staking, formerly known as Consensys Staking, has begun exiting its Ethereum validators from the Lido protocol. The exit process is being carried out in coordination with clients, partners, and external security advisors. Lido confirmed the exits began this week, with the final validators expected to complete their exit by October 7, 2026.

The nature of the incident, its cause, and the full scope of affected infrastructure have not been disclosed. In addition, MetaMask has confirmed it is actively remediating the issue internally while working alongside external partners.

What Happens to the ETH?

The Ethereum withdrawn from MetaMask Staking’s validators will not disappear. It will likely return to the Lido protocol gradually as each validator completes the exit, withdrawal, and re-entry cycle. According to Lido Finance developer Will Shannon, that process could take up to 45 days due to an extended entry queue currently affecting the network.

Furthermore, Lido has been clear that no action is required from stETH holders. The protocol’s diverse Node Operator set, combined with its ad hoc reserve fund holding over 6,750 stETH, is designed to absorb and contain exactly this type of disruption without impacting normal protocol operations.

One important clarification MetaMask has made, its staking operations are non-custodial. Moreover, the company does not manage withdrawal keys for staked ETH on behalf of clients. The exit process is a protective measure rather than a fund recovery operation.

The Implication

A security incident at MetaMask’s infrastructure level, even one where no direct wallet threat has been confirmed, carries weight. MetaMask is one of the most widely used Ethereum wallets in the world. Any compromise of its backend infrastructure raises questions about how attackers gained access and what data or systems were exposed.

The validator exit from Lido also means foregone staking rewards and possible downtime penalties if validators are taken offline quickly to reduce network penalty risk, a financial cost the company is absorbing to protect client assets. Also, the investigation is ongoing, and the next update will matter significantly for how the market and the broader Ethereum staking community respond.

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