Data from Ethereum staking tracker Validator Queue shows that as of 4:00 PM Beijing time on September 10, the number of ETH waiting to be unstaked on the Ethereum network surged to 2,040,329. This nearly doubled the previous all-time high of 1,058,531 set on August 29. Meanwhile, withdrawal times have been significantly extended to about 35 days and 10 hours. At the same time, the number of ETH currently waiting to be staked stands at 808,206, with an estimated entry queue time of around 14 days and 1 hour.
Such a sudden and massive wave of ETH unstaking is highly unusual. Is a crypto whale preparing to exit? If so, a sell-off of this magnitude could trigger major shocks not only for ETH but also for the broader crypto market. However, after analyzing the surrounding market context, it becomes clear that this situation has an identifiable cause—and ETH holders need not panic.
The root of this event traces back to a security incident yesterday. On the evening of September 8, Switzerland-based crypto platform SwissBorg was hacked, losing 192,600 SOL (worth around $41.3 million). SwissBorg later revealed that the breach occurred because the API of one of its staking partners had been compromised, allowing hackers unauthorized access to the staking wallet and the transfer of assets.
It was later discovered that the affected partner was Kiln, a staking service provider. Kiln subsequently issued a statement:
“SwissBorg and Kiln are investigating a potential incident involving unauthorized access to a staking operations wallet. We became aware of this on September 8, 2025. The event resulted in the abnormal transfer of SOL tokens from wallets used for staking operations. Upon discovery, SwissBorg and Kiln immediately activated an incident response plan, contained the activity, and engaged with our security partners. SwissBorg has suspended Solana staking on its platform to protect other users.”
But how does this relate to ETH unstaking? The key lies in the fact that Kiln is not limited to the Solana ecosystem—its staking services span across most PoS networks, including Ethereum.
Earlier today, Kiln officially announced that “for security reasons, it will systematically exit all ETH staking positions.” The announcement stated:
“Following yesterday’s announcement regarding the Solana incident involving SwissBorg, Kiln is taking additional precautionary measures to secure all client assets across networks. As part of this plan, Kiln has begun systematically withdrawing all Ethereum (ETH) validator nodes today. This exit procedure is a preventive measure designed to ensure the ongoing integrity of staked assets.
This decision prioritizes the interests of clients and the broader industry, and was made in collaboration with key stakeholders and leading security firms.
Client assets remain secure at all times. The withdrawal process is expected to take 10 to 42 days (depending on the validator), after which withdrawals will be completed within 9 days according to Ethereum’s protocol. Validators will continue earning rewards during the exit process. The delay is protocol-enforced, based on the number of exiting validators, and cannot be modified by Kiln.
Withdrawals are handled automatically by the Ethereum protocol and will be sent directly back to your wallet or the smart contract used for staking, after which they can be withdrawn.”
According to well-known Ethereum developer sassal.eth, Kiln has staked about 1.6 million ETH in total. This means the market may see a large amount of ETH entering the exit queue in a short period, but it doesn’t necessarily mean these tokens will be sold. Kiln may simply restake them using new validator keys.
In short, the surge in ETH unstaking today is essentially Kiln’s risk-avoidance measure. Most of this ETH belongs to clients like SwissBorg who use Kiln’s services. While some clients may sell, the majority of these ETH are expected to be restaked—either via Kiln (once risks are cleared) or through other staking solutions. Therefore, there is no need for excessive panic in the market.
