In Response to the Kiln & Swissborg Security Breach

Figment’s Resources and Support for the Ecosystem

Figment’s Infrastructure and Client Assets Remain Secure and Unaffected By the Breach.

However, it is important to stay alert to upcoming developments due to Kiln's follow-on decisions.

While entities may not have been directly impacted by the hack, Kiln’s actions are having ripple effects across the ecosystem— from questions about security practices and standards, to shifts in ETH queue dynamics, to product innovation aimed at “jumping the ETH queue”. Tokenholders looking to stake or unstake ETH in the upcoming weeks could be impacted by Kiln’s decisions.

Resources are organized to help answer those questions and inform strategies to optimize rewards.

1

September 8, 2025, Swissborg and Kiln experienced a security breach. Figment’s infrastructure and client assets were not affected.

2

While the incident targeted SOL, Kiln announced the decision to involuntarily initiate the forced exit of 100% of their ETH validators out of an abundance of caution. They put all of their APIs on hold and created new validators on various Cosmos chains. 

3

Kiln represents ~4% of ETH staked (~$7B), and their decision to exit ETH validators pushed the exit queue to a new high, with potential impacts on missed rewards when those validators re-enter the staking queue.

4

So, you may not have been directly impacted by the hack, it is raising questions — from security best practices and standards, to ETH queue dynamics, to evaluating new solutions.

5

Notably, this influx of stake in the queues is happening at a key moment as digital assets further expand into traditional finance on the eve of U.S. regulators decide on ETH ETF staking (Oct 30) and as more companies worldwide add ETH to their digital asset treasury strategies.

Figment prides itself on our security team, processes, and procedures, and on leading the industry to protect customer assets while maintaining the infrastructure required to scale digital assets globally.

We are bringing our documentation forward, sharing it here, and answering questions in real time as this situation unfolds over the coming weeks. It will take at least that long for the ETH to exit and re-enter the staking queue.

We are also working 1:1 with institutions on potential solutions to mitigate queue impacts and optimize rewards. 

Resources

Security Resources:

ETH Queue Resources:

New Figment Solutions to Optimize Rewards Through the Queue Dynamics:

Coming soon

Disclaimer: The information herein is being provided to you for general informational purposes only. It is not intended to be, nor should it be relied upon as, legal, business, tax or investment advice. Figment undertakes no obligation to update the information herein.

Questions about the Kiln Security Incident

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