Swell Halts swETH and rswETH Deposits and Withdrawals After…
By Karthik Subramanian
AI summary of the source article
Ethereum liquid staking protocol Swell suspended deposits and withdrawals for swETH and rswETH after contract exchange rates rose unexpectedly. Swell is investigating potential administrative credential compromises alongside security partners while maintaining that user funds remain safe.
Why it matters
The text notes that "unexpectedly elevated contract rates can create accounting discrepancies and potentially affect lending markets that rely on those valuations," while temporarily restricting direct redemptions for holders.
Key facts
- Swell halted swETH and rswETH deposits and withdrawals after contract exchange rates diverged 5% to 6% above reliable market levels.
- Blockchain security researchers warned that administrative credentials appeared compromised, with net asset values increasing by up to 1% per hour without asset backing.
- Swell stated that no ETH has left affected deposit or withdrawal contracts and that user funds are safe.
Source excerpt · FinanceFeeds
Ethereum liquid staking protocol Swell has suspended deposits and withdrawals for its swETH and rswETH tokens after their smart contracts began reporting exchange rates significantly above previously established levels. The suspension, announced on October 23, 2026, followed warnings from blockchain security researchers about potentially compromised administrative credentials and unexplained incre…