Swell suspends swETH and rswETH deposits and withdrawals pending restoration of correct NAV

Odaily reports: At 2:39 AM EST on October 23, Swell announced the suspension of deposits and withdrawals for its liquid staking token swETH and restaking token rswETH until the net asset value (NAV) returns to correct levels, without disclosing a restoration timeline. On-chain data shows that at 16:48 that day, the contracts reported approximately 1.203 ETH per swETH and approximately 1.138 ETH per rswETH, roughly 6% and 5% higher than the normal exchange rates of 1.133 ETH and 1.082 ETH as determined by Spreek, respectively; rates on decentralized exchanges stood at approximately 1.089 WETH per swETH and 1.029 WETH per rswETH, both far below the contract-reported values. Spreek stated that at 21:28 on October 21, the admin keys of both tokens were suspected to have been compromised, with NAV being inflated by up to 1% per hour without asset backing; the attacker deployed 4 malicious upgrade contracts capable of withdrawing approximately 2,513 ETH, but the transactions were not queued through Swell's multisig. Odysseus, founder of Phylax Systems, said the incident involved BOT key misuse, and losses have not been confirmed. Railway disclosed the same day that an unauthorized third party may have read customers' encrypted environment variables. Swell stated that funds are safe.