Key Takeaways

Ethereum faced its largest slashing event since the PoS transition, with 39 validators penalized due to operator errors. But despite setbacks, ETH’s price climbed above $4,400.

Ethereum’s [ETH] recent surge in price and demand has been shadowed by an unexpected setback.

On the 10th of September, the network witnessed one of its largest coordinated slashing events since transitioning to proof-of-stake in 2022, with 39 validators penalized, according to Beaconcha.in.

How did SSV Network play a role in this mishap?

Operators caused the incident through missteps involving the SSV Network, a distributed validator technology (DVT) protocol that boosts decentralization by splitting validator keys across multiple operators.

Although the protocol itself remained intact, the event exposed how delicate poorly maintained infrastructure can be for staking.

SSV founder Alon Muroch explained that third-party providers relying on SSV’s framework operated the affected validators.

He said that a cluster of validators tied to liquid staking provider Ankr triggered slashing when routine maintenance unexpectedly caused penalties.

The losses incurred

Validators that migrated from Allnodes two months earlier triggered another incident, as duplicate setups during the migration caused repeated signing and led to slashing.

Each validator lost around 0.3 ETH, approximately $1,300, and additional inactivity leaks further increased the financial impact.

The incident affected a total of 39 validators, marking

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Author: Ishika Kumari