Swell Halts swETH and rswETH Deposits and Withdrawals Pending NAV Correction
Odaily News: On Oct. 23 at 2:39 a.m. ET, Swell announced the suspension of deposits and withdrawals for its liquid staking token swETH and restaking token rswETH until net asset values return to correct levels, without disclosing a resumption timeline. On-chain data showed that at 16:48 that day, the contract reported roughly 1.203 ETH per swETH and 1.138 ETH per rswETH, about 6% and 5% higher than the normal exchange rates of 1.133 ETH and 1.082 ETH identified by Spreek, respectively. Rates on decentralized exchanges stood at about 1.089 WETH per swETH and 1.029 WETH per rswETH, both far below the contract-reported values. Spreek said that at 21:28 on Oct. 21, the admin keys of both tokens were suspected of being compromised, with net asset values inflated by up to 1% per hour without asset backing. The attacker deployed four malicious upgrade contracts capable of withdrawing about 2,513 ETH, but the transactions were not queued through Swell's multisignature. Odysseus, founder of Phylax Systems, said the incident involved BOT key misuse, with losses not yet confirmed. Railway disclosed the same day that an unauthorized third party may have read customers' encrypted environment variables. Swell said funds are safe.