Solflare has pledged to compensate users for staking rewards lost after a security issue at an external service provider caused its Solana validator to go offline. Approximately 1.56 million SOL, worth about $160 million, remained staked with the affected validator.
The wallet provider said it would cover the rewards users missed while the validator was unable to generate staking income.
Staking allows SOL holders to earn passive returns by delegating their tokens to validators, which verify transactions and help secure Solana’s blockchain. In exchange, users receive a share of the rewards generated by their chosen validator. Solflare provides an integrated staking service that enables users to participate directly through its wallet app.
On Tuesday evening in the United States, Solflare disclosed that the third-party firm operating its validator had reported a security incident involving the keys it held for the service.
Solflare did not name the company involved. Data from Stakewiz showed that the validator had stopped earning rewards, while roughly 1.56 million SOL remained delegated to it as of Wednesday afternoon.
The company reassured users that their assets remained safe. According to Solflare, staked SOL stays in individual stake accounts controlled by users’ own keys, meaning the validator operator cannot withdraw the delegated funds. Solflare also confirmed that no user funds had been affected by the incident.
Although compromised or inaccessible validator keys can interrupt operations and prevent staking rewards from accumulating, they do not provide control over the SOL delegated by users.
As a result, affected users face a temporary loss of staking income rather than a loss of their tokens. The incident also highlighted that the validator, despite carrying Solflare’s name, had been managed by an outside provider.
On Wednesday, Solflare confirmed that a replacement validator was operational and said it would reimburse missed rewards for users who migrate their stake to the new service.
Users can begin the process by choosing the regular unstaking option for “Solflare (Legacy)” before delegating their SOL to the replacement validator. Alternatively, they can wait for an upcoming app update that will guide them through the migration.
The transfer will not take effect immediately because Solana processes staking changes at the end of each epoch, a period that typically lasts around two days. The existing stake must complete its transition before the new validator can begin earning rewards on those tokens.
Solflare also warned users to be cautious of scammers who might exploit the migration. The company said the transition would be handled entirely within its official app and emphasized that it would never send users direct messages or external links asking them to move their stake.
