Solflare validator rewards halted following provider security breach

Solflare, a non-custodial Solana wallet platform, has reported that its validator stopped earning staking rewards due to a security incident at a third-party infrastructure provider. The breach specifically affected the validator keys held by the provider, rather than Solflare’s wallet software or the Solana protocol itself.

Solflare has clarified that user funds remain safe. Because the platform is non-custodial, delegated SOL remains in individual user-controlled stake accounts and was not accessible via the compromised operational keys. Approximately 1.56 million SOL is currently affected by the reward interruption.

To resolve the issue, Solflare plans to release an app update to guide users through migrating their delegated stake to a new validator. The company is also developing a compensation plan for users who complete this migration to offset the period during which rewards were paused.