Kiln Responds to Infrastructure Issue With Validator Exit, Funds Remain Protected

PARIS, FRANCE — September 9, 2025 — Following our announcement yesterday regarding the Solana incident involving SwissBorg, Kiln is taking additional precautionary measures to safeguard client assets across all the networks. As part of this response, Kiln today began the orderly exit of all of its Ethereum (ETH) validators. The exit process is a precautionary measure designed to ensure the continued integrity of the staked assets.

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This decision prioritizes our customers and the wider industry, and is informed by collaboration with key stakeholders and advice from leading security firms.

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Client assets remain secure. The exit process is expected to take between 10 and 42 days depending on the validator, after which withdrawals will be completed as scheduled by the network which takes up to 9 days. Validators still earn rewards while exiting. These delays are enforced at the protocol level based on how many validators are exiting and cannot be changed by Kiln.

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“We took immediate action once we identified a potential compromise in our infrastructure,” said Laszlo Szabo, Co-founder and CEO at Kiln. “Exiting validators is the responsible step to protect stakers, and we are monitoring the process closely to ensure the security and reliability of our services.”

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Kiln has temporarily paused access to certain services while hardening its infrastructure. A full post-mortem will be shared once the review is complete. At this time, there is no indication of any funds loss other than the SwissBorg incident.

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“Our priority is, and will always be, the safety of client assets and the resilience of our platform,” added Ernest Oppetit, Co-founder and CPO at Kiln. “We are committed to transparent communication and will continue to provide updates until the exit process is fully complete.”

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About Kiln

Kiln is a leading enterprise-grade staking platform, providing secure and automated infrastructure for institutions and individuals to participate in proof-of-stake networks. With a multi-cloud, multi-region architecture and SOC 2 Type 2 certification, Kiln powers tens of thousands of validators across major blockchains while prioritizing security, reliability, and compliance.

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Media contact

Thomas de Phuoc
communications@kiln.fi

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Kiln FAQ — Validator Exit Update

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Safety of funds

Are my funds safe? Did I lose any ETH?

Currently, we are not aware of any further customer losses outside of Monday's SwissBorg incident. However, out of an abundance of caution, we are exiting all Ethereum (ETH) staked positions from validators we are hosting so they can be returned safely to customers' wallets.

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Q: Is my ETH still earning rewards?
Validators will keep earning rewards while in the exit queue, which is part of the standard process. Once they are exited and awaiting withdrawal, they no longer earn rewards.

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Q: Can my funds be stolen?
No, this is a non-custodial offering. Withdrawals are handled automatically by the Ethereum protocol, and will return either directly to your wallet or to the smart contract used in the staking process by your wallet and then they will be ready to be claimed.

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Timeline and withdrawals

When will I get my ETH back?
The exit process is expected to take between 10 and 42 days depending on the validator, after which withdrawals will be completed as scheduled by the network which takes up to 9 days. Validators still earn rewards while exiting. These delays are enforced at the protocol level based on how many validators are exiting and cannot be changed by Kiln. You can track the progress of your validator using the beacon chain explorer: https://beaconcha.in/validator/[insert validator address]

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Why does it take days or weeks?
This delay is built into Ethereum itself to protect the network. It prevents too many validators from leaving at once and ensures stability. As more validators exit, the queue will decrease. You can check the current length of the exit queue here: https://www.validatorqueue.com/

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Process transparency

Why are all validators being exited?
We identified a security issue and chose to exit validators out of caution. This is the best course of action to protect stakers and funds.

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Why can’t you share more details yet?
Some information needs to remain internal while the investigation is not yet finalized. We will share a full post-mortem once it is safe to do so.

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Are other chains affected?
No, this response concerns ETH validators only.

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Unstaking & technical details

Do I need to unstake myself?
No, you have already been unstaked. Withdrawals are handled automatically by the Ethereum protocol, and will return either directly to your wallet or to the smart contract used in the staking process by your wallet and then they will be ready to be claimed.

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Can I exit my validators manually?
No. Ethereum exits must follow protocol rules. We are handling the process end-to-end for you.

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Trust and reputation

Why should I trust Kiln after this?
We acted immediately when we identified a risk. By exiting validators, we prioritized protecting staker funds. We will publish a transparent post-mortem.

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Is this issue related to my wallet?
No. Your wallet remains secure.

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Ethereum network concerns

Does exiting this many validators harm Ethereum?
No. Ethereum is designed for validator exits. Exits are staggered and protocol-controlled, so this will not destabilize the network.

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