Solflare has committed to reimbursing users for staking rewards lost after a security incident involving an external provider forced its Solana validator offline. Around 1.56 million SOL, valued at approximately $160 million, remained delegated to the validator when it stopped generating rewards.

The wallet platform said it would make up for the staking income users missed during the disruption.

SOL holders can earn rewards by delegating their tokens to validators, which process transactions and help maintain the Solana blockchain. In return, users receive a portion of the rewards generated by their chosen validator. Solflare offers this service directly through its wallet application.

On Tuesday evening in the United States, Solflare announced that the third-party company it hired to operate its validator had reported a security incident involving the keys under its control.

The company did not identify the service provider. Stakewiz data showed that the validator had stopped earning rewards, with approximately 1.56 million SOL still delegated to it by Wednesday afternoon.

Solflare stressed that users’ assets remained secure. It explained that staked SOL is held in individual stake accounts controlled by users’ own keys, meaning the validator operator cannot withdraw the delegated tokens. The company also confirmed that the incident had not resulted in any loss of user funds.

Although access to a validator’s keys can disrupt its operations and prevent it from earning rewards, those keys do not grant control over users’ staked assets.

The disruption has therefore affected staking income rather than the underlying funds. It also revealed that the validator, despite being presented under the Solflare brand, had been operated by an outside company.

On Wednesday, Solflare said a replacement validator was already running and pledged to cover missed rewards for users who transfer their stake to the new service.

Users can start the migration by selecting the standard unstaking option for “Solflare (Legacy)” and then delegating their SOL to the replacement validator. Those who prefer a guided process can wait for an upcoming application update that will provide instructions.

The transition will take time because Solana processes staking changes at the end of each epoch, which generally lasts about two days. Users must wait for their existing stake to complete the transition before the new validator begins earning rewards on their behalf.

Solflare also urged users to watch out for phishing attempts during the migration. The company emphasized that the process would take place exclusively within its official app and that it would never send direct messages or external links asking users to transfer their stake.