Solflare says staking provider security incident halted its validator’s rewards

The company confirmed that delegated stakes remain in each user's stake account, fully under their control. On Solana's network, delegating SOL to a validator doesn't transfer coins to that validator. The tokens stay in a stake account controlled by the user, while the validator gets credit for helping run the network and users receive a share of the rewards.

When the provider's keys were compromised, the validator lost its ability to perform its function. It never gained access to user deposits, and the incident appears contained to the provider's key handling. Solflare frames it as no threat to user wallets or the broader Solflare ecosystem.