Kiln Withdraws Validators to Protect Stakers After SwissBorg Security Breach
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Crypto staking platform Kiln has begun an "orderly exit" of all its Ethereum validator nodes following a $40 million exploit that targeted SwissBorg’s Solana Earn program. The breach, attributed to hackers exploiting a vulnerability in an API provided by Kiln, allowed unauthorized wallet access and led to the theft of roughly 192,600 SOL. While SwissBorg pledged full reimbursement from its treasury, Kiln emphasized that no additional funds beyond those tied to SwissBorg were compromised. As a precaution, Kiln initiated the validator exit process on September 10, 2025, which is expected to take between 10 and 42 days. During this period, staking rewards will continue to accrue, though withdrawals may take up to nine days to process. Kiln’s CEO, Laszlo Szabo, described the move as a responsible step to safeguard stakers, while the company temporarily suspended some services to reinforce security. SwissBorg, meanwhile, is working to recover the stolen funds with the help of white-hat hackers and security partners and plans to use its Solana treasury to restore user balances. Both firms have promised further updates, with Kiln planning to publish a post-mortem once the investigation is complete.