The wallet will reimburse missed rewards after a problem at an outside company knocked its Solana validator offline. About 1.56 million SOL, worth roughly $160 million, was delegated to it. Solflare says user funds were not touched.
Solflare, a wallet app for the Solana blockchain, pledged to make up the rewards its users missed after its staking validator went offline. The validator stopped earning, and the wallet has not named the company that held its keys.
An outside firm reports a key incident
The wallet runs its own validator so users can stake without leaving the app. On Tuesday evening U.S. time, Solflare said the company it pays to run that validator reported "a security incident on their side", according to Solflare's post on X.
Solflare did not identify the company. Stakewiz data showed about 1.56 million SOL still delegated to the validator on Wednesday afternoon.
The tokens themselves are safe, Solflare said. Staked SOL sits in the user's own stake account and is controlled by the user's keys alone, and no user funds were touched. Whoever holds a validator's keys can stop it from earning but cannot withdraw anyone's stake.
Solflare opens a replacement validator
On Wednesday, Solflare said a replacement validator is live and that it will cover missed rewards for everyone who moves to it. Users can choose regular unstaking from "Solflare (Legacy)" and then stake with the new validator, or wait for an app update that walks them through the process.
The switch is not instant. Stake changes take effect only at the end of each epoch, a period of roughly two days on Solana, so the old stake has to wind down before the new one starts earning.
A mass migration also gives scammers an opening. The company said the move will happen only inside its app, and that it will never message users directly or send them a link about it.
Source: CoinDesk
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