CoinDesk
Solflare says it will reimburse missed staking rewards after a security incident at an unidentified outside company knocked its Solana validator offline. About 1.56 million SOL, worth roughly $160 million, was delegated to the validator and had stopped earning rewards.
Why it matters
Solflare says users’ staked SOL remains in their own stake accounts and under their own keys, and that no user funds were touched. The incident affected the validator keys held by the outside company, preventing the validator from earning rewards; it did not give that company control to withdraw users’ stake.
The incident also highlights a distinction for users: a validator associated with a wallet app may be operated by an outside company. Solflare has not named the company involved.
Market impact
Solflare has launched a replacement validator and says it will cover missed rewards for users who move their stake there. Users can begin by unstaking from “Solflare (Legacy)” and staking with the replacement, or wait for an app update with migration guidance.
The switch is not immediate. Solana stake changes take effect at the end of epochs, which last roughly two days, so the old stake must wind down before the new validator begins earning rewards. Solflare says the migration will take place only inside its app and warns users that it will not directly message them or send migration links.
Frequently asked questions
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How much SOL was delegated to Solflare’s offline validator?
About 1.56 million SOL, worth roughly $160 million, was delegated to the validator and had stopped earning rewards.
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Did the validator incident put users’ staked SOL at risk of withdrawal?
Solflare said the stake remains in users’ own accounts under their keys and that no user funds were touched. The affected validator keys could stop it earning rewards, but could not withdraw users’ stake.
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Who operated the validator involved in the incident?
Solflare said an outside company held the affected validator keys, but it has not identified the company.
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How can Solflare users move their stake to the replacement validator?
Users can unstake from “Solflare (Legacy)” and stake with the replacement validator, or wait for an app update that will guide them through the move.
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Why can moving stake to the replacement validator take several days?
Solana stake changes take effect at the end of epochs, which last roughly two days. The old stake must wind down before the new validator starts earning rewards.
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