What you need to know:

• Kiln, an institutional staking service provider, has announced the initiation of an “orderly exit” for all its Ethereum (ETH) validators.
• This action is framed as a precautionary measure to protect clients following the exploitation of SwissBorg’s SOL earn wallet, which resulted in a loss of $41.5 million.
• The decision was made with input from stakeholders and security firms.

Kiln has portrayed its validator exit as a prudent step to enhance client security amid growing risks.

In a Tuesday blog post, Kiln clarified that these moves were taken after discerning potential infrastructure risks, assuring that client assets would remain secure and under their control throughout this process. The firm mentioned that validators will still accrue rewards during the exit duration but not post-completion.

“We took immediate action upon discovering a risk in our infrastructure,” stated CEO Laszlo Szabo. “Exiting validators is a responsible precaution to ensure the safety of stakers, and we are closely observing the entire process to maintain service reliability.”

Kiln estimates that the exit process per validator could range from 10 to 42 days, followed by a withdrawal timeframe of up to nine days.