The crypto wallet Solflare has committed to compensating users for missed staking rewards following a security incident. The issue affected a validator node managed by a third-party provider, which stopped generating income for users who delegated their SOL tokens to it.
According to the company, the incident involved the validator's keys, but user assets remained secure throughout the event. The delegated coins are held in individual user accounts controlled by their own keys, meaning the operator could not withdraw these funds.
The total value of the affected assets is estimated at approximately 1.56 million SOL, or about $160 million. Solflare officially reported the problem on October 27, noting that the third-party provider had initiated an investigation into the security breach.
On October 29, Solflare launched a new validator node. Users can migrate their stake manually by unstaking from the legacy validator and delegating to the new one, or they can wait for an upcoming application update that will automate the process.
The company has promised to cover the missed rewards for users who migrate to the new validator. Details regarding the exact compensation period and the calculation methodology for these payments will be disclosed by the team at a later date.
