Solflare, a Solana‑based wallet, announced on November 2 that it has entered a heightened security state, referred to as “bunker mode.” The company has limited access to its infrastructure and code, and every change now requires multiple approvals. New development work has been paused.
Background of Recent Industry Attacks
The move follows a wave of security breaches across the crypto sector, including an October 29 breach at Binance that affected approximately $6.3 billion in assets, an incident at hardware‑wallet maker Keystone that exposed personal information, and a suspension of withdrawals at Brazil’s Mercado Bitcoin due to unauthorized activity.
Validator Incident Impacting Staking Rewards
On October 27, Solflare reported that a third‑party staking provider experienced a security incident involving keys tied to Solflare’s Solana validator. The validator stopped producing staking rewards while the provider investigated. Solflare emphasized that users’ delegated SOL remained in their own stake accounts, controlled by private keys, and that no user funds were moved.
Blockchain data showed about 1.56 million SOL delegated to the affected validator on October 28. Analytics firm Bitquery later identified unauthorized transfers of roughly $135 000 from several Solana validators, including Solflare’s, but separated these from customer staking accounts.
Migration and Compensation Plan
Solflare set up a replacement validator and initially gave users until November 1 to migrate their delegated SOL for compensation. The deadline has been extended to November 30. Users are instructed to complete the migration only through the Solflare app, as the company warned against phishing attempts.
Staking rewards will resume once the transferred SOL becomes active on the new validator. Solflare pledged to cover rewards missed between October 26 and November 1 for users who complete the migration by the extended deadline.
