Joseph Lubin, Ethereum co-founder and founder of Consensys, the company behind MetaMask, said an investigation has found no sign that user wallets or customer funds were touched by a security incident that hit part of the company’s infrastructure. The assurance, posted on X, is the third the MetaMask team has issued since the incident was first reported on September 30, 2026, according to Ambcrypto.
Writing on October 2, Lubin said the Secret Recovery Phrase and wallet assets could not have been involved in the incident, and that users continue to control their own keys. “You custody and control your own keys. That is how self custody works,” he said. He added that Consensys does not publicly discuss the details of an open incident, and instead discloses issues to partners and relevant stakeholders once an issue is sufficiently understood.
Also read: MetaMask Exits Lido Validators After Security Incident
Key facts
- The incident was first reported on September 30, 2026, and the MetaMask team said it took precautionary measures, including taking validators offline.
- Ethereum researcher Kaden put the number of validators that exited at about 17K, translating to roughly 513K ETH total, with over 800 potentially impacted validators still to exit as of October 1.
- Validator Queue data cited by Ambcrypto showed about 10,500 validators exited over the period, from 884K to 873K, or about 336K ETH, an overall figure that may not be entirely linked to MetaMask.
- ETH queued for exit jumped 3x from 205K ETH to 773K ETH by October 1 and then to 850K ETH a day later.
- Lido confirmed it exited MetaMask validators, and Linea, the Ethereum L2 developed by Consensys, announced a similar move on October 2.
What the key rotation means
Blockonomi reported that Consensys and its partners rotated validator keys as a precaution, a step Lubin described as operationally inconvenient and regrettable because validators have to leave the staking queue and re-enter it to restake, which takes time and coordination with partners. Lubin explained that Ethereum’s validator architecture separates two keys: one that proposes and attests, and another that can withdraw the stake. An issue in the validator infrastructure therefore cannot result in the improper movement of the underlying ETH, and he said Consensys does not hold withdrawal keys for its clients.
Linea said the affected validators supporting the Yield Boost vault were being exited as a precaution, and that the funds and control of the staking vault itself were unaffected. Lido, for its part, said it would take a while before re-entering MetaMask validators.
Also read: CFTC allows tokenized funds and on-chain records, not Bitcoin
The two reports differ on how the exit numbers should be read. Ambcrypto cites Kaden’s figure of about 17K validators, or about 513K ETH, while the Validator Queue data it also cites shows roughly 10,500 validators, or about 336K ETH. Ambcrypto notes the queue figure is an overall number that may not be entirely tied to MetaMask. Blockonomi’s account focuses on the key architecture and does not give an exit total.
Why it matters
MetaMask is one of the most widely used self-custody wallets, so any security incident touching its operator is a test of how far self-custody actually protects users when a company’s own infrastructure is attacked. Lubin’s statements draw the line at validator infrastructure: user keys and withdrawal keys are separate, and Consensys says it never held the withdrawal keys. The staking side is where the visible disruption sits, with Lido and Linea both stepping back from MetaMask validators. ETH still traded below $2.8K and consolidated during the period, so the market has not repriced the asset on the reports so far.
Lubin described self custody plus rigorous decentralization as a paradigm shift in security, and said the world is increasingly waking up to the benefits of that architecture. No details of the underlying incident itself have been made public beyond the limited disclosures.
What to watch
The next concrete data point is how quickly the over 800 potentially affected validators that had yet to exit as of October 1 work through the queue, and when Lido and Linea re-enter MetaMask validators. Any further disclosure from Consensys on what was affected would also change the picture.
This article is informational only and is not financial advice. Crypto markets are volatile and uncertain, and readers should do their own research before making decisions.
Reported by ambcrypto.com.
Sources: AMBCrypto, Blockonomi