Kiln, a provider of staking services for institutions, said it started an “orderly exit" of all its Ethereum (ETH) validators, framing the move as a safeguard for clients following SwissBorg’s SOL earn wallet being exploited for $41.5 million.

The decision underscores how staking providers are increasingly prioritizing resilience and client protection over uninterrupted uptime.

In a Tuesday blog post, Kiln described the exits as a precautionary step and said the decision was made in consultation with stakeholders and security firms. The company added it has temporarily paused access to some services while "hardening its infrastructure."

The company emphasized that there was no indication of additional losses and that stakers’ ETH remains protected. Kiln noted that its non-custodial framework ensures client assets remain under their control throughout the process, further reducing the risk of exposure during the exit period.

“We took immediate action once we identified a potential compromise in our infrastructure,” CEO Laszlo Szabo said in the post. “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.”

Kiln says validators are being exited in an “orderly” process governed by Ethereum’s protocol rules. The firm estimates the exit will take 10–42 days per validator, after which withdrawals may take up to nine days.

Validators continue earning rewards while they wait in the exit queue, but not after they have fully exited and are awaiting withdrawal. Kiln stressed these delays are enforced at the protocol level and cannot be accelerated by the provider, meaning clients should expect a measured process rather than immediate liquidity.

Read more: SwissBorg’s SOL Earn Wallet Exploited for $41.5M After Partner's API Is Compromised

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