Kiln Begins Exit of Ethereum Validators After SwissBorg Exploit

Kiln, a staking services provider for institutions, has initiated an "orderly exit" of its Ethereum validators. This decision follows the exploitation of SwissBorg’s SOL earn wallet, resulting in a loss of $41.5 million.

Key points include:

Kiln frames the exit as a precautionary measure to safeguard clients.
The company consulted stakeholders and security firms before proceeding.
Access to some services is temporarily paused while infrastructure is strengthened.
No additional losses have been reported; client assets remain protected under a non-custodial framework.
The exit process will take 10-42 days per validator, with withdrawals taking up to nine days afterward.
Validators earn rewards while in the exit queue but not after exiting.

CEO Laszlo Szabo stated that the move aims to protect stakers and ensure service reliability. The delays in liquidity are enforced by Ethereum’s protocol rules and cannot be expedited by Kiln.