Hey guys,
Is it true that after staking, a validator can take your tokens if there are issues like sanctions? Will they just take our assets after we stake them?
Can Validators Seize Staked Tokens?
9 replies 426 views
Read the rules before staking. If you're using a noncustodial wallet, validators don’t get full control over your tokens.
Just make sure to check the protocol's guidelines.
just_nonceNewbie
Posts: 122 · Reputation: 15
#3Aug 21, 2017, 03:13 PM
From what I know, that shouldn't happen. Your funds aren't transferred to the validator. Unless you’re using a centralized service, I doubt they do any AML checks.
chris.viperMember
Posts: 267 · Reputation: 213
#4Aug 21, 2017, 08:36 PM
There are different staking types but in decentralized networks, validators can’t seize your coins. The real risk lies with where you deposit your tokens. If a smart contract is controlled by a project, then they could potentially seize it.
f0rk_5tackNewbie
Posts: 124 · Reputation: 3
#5Aug 22, 2017, 10:36 AM
In delegated proof of stake, validators don’t control your funds at all. They just get your voting power. You could lose funds if a validator gets slashed, but that’s not really a thing with Solana or Hyperliquid.
If you break AML rules, validators can’t take your tokens. Your wallet might get blacklisted and you can’t send your coins, but they’re still yours. Just keep in mind with stablecoins, the issuer might freeze your balance.
Not sure, but I think it depends on the wallet where you staked. If there's a government order, maybe they can freeze it. What specific validator are you worried about?
In noncustodial staking, validators can't take your funds. When you stake from a self-custodial wallet, it stays under the network's protocol. If a validator acts up, you won’t earn rewards, but they can't take your coins. But with exchanges, they have the power to freeze.
Good point, there might be conditions in your staking contract that you can't ignore. Always read the fine print before committing. If you're in a restricted area, the pool provider should inform you about any AML laws.
notyourkeysNewbie
Posts: 252 · Reputation: 12
#10Aug 24, 2017, 02:57 PM
It really depends on where you stake. If it’s a centralized platform, they can seize your coins because they control the staking. But if you stake directly with a validator, they can’t take your tokens unless you sent them over.