Solflare, a non-custodial Solana wallet, told users on Tuesday evening that its staking validator has stopped producing rewards after the third-party provider that runs the node reported a security problem involving the validator’s keys.

In a post on X published at 7:26 p.m. ET on Oct. 27, Solflare said its “staking provider has notified us of a security incident on their side, affecting the keys they hold for the Solflare validator.” The provider is investigating, according to the post. Solflare did not name the provider, say when the incident occurred, or explain how the keys were affected.

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What Happens to Delegated SOL

Solflare said stakers’ principal was not affected. Delegated SOL “sits in your own stake account and is controlled by your keys alone,” the company wrote, adding that Solana’s design prevents a validator’s key holders from pulling stake out of a delegator’s account. “No user funds were touched,” it said.

Delegators do lose income while the node is down. Solana validators earn rewards for themselves and their stakers by voting on blocks. Stakewiz listed 1,559,012 SOL delegated to the Solflare validator as of 13:05 UTC on Wednesday, marked it delinquent, and showed zero vote credits so far in epoch 1070. Validators.solutions also showed about 1.56 million SOL and a delinquent status.

Migration and Compensation

Solflare said it is switching to a new Solflare validator, so users’ stake “will need to move too.” No action is required yet, the company said, and an upcoming app update will walk users through the move. It gave no date for that update.

Rewards stay paused “until your stake is active on the new validator,” Solflare said, and the company is “working on a compensation plan for everyone who migrates.” It did not say how large that compensation would be or how it would be calculated.

The wallet also warned stakers that the migration “will only happen through the Solflare app” and that it will never contact them by direct message or send them a link about it. Solflare said it would post on X as soon as the migration path goes live.

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