Ethereum staking protocol Swell halted deposits and withdrawals after unusual values appeared in the contracts of two tokens, while on-chain analyst Spreek flagged a security risk that could affect around 2,500 ETH.
According to a report by Wu Blockchain citing Unchained, the suspension covers the swETH and rswETH tokens. Swell temporarily halted transactions until the net asset values of both tokens and their ETH equivalents are corrected.
Why did the ETH equivalents in the contracts rise?
According to the data, the contracts showed that 1 swETH was worth approximately 1,203 ETH, while 1 rswETH was worth 1,138 ETH. These rates are approximately 6% and 5% above normal levels, respectively.
The investigation is focused on this unusual increase in the ETH equivalents of the tokens calculated by the contracts. The exact cause of the discrepancy is under investigation.
Suspected compromise of admin keys
Spreek said they suspect the admin keys for the tokens in question may have been compromised. The analyst said a malicious upgrade contract could affect approximately 2,500 ETH.
The upgrade in question has not yet been executed. Swell also said in its statement that no ETH had been transferred from the affected contracts. The protocol is continuing its investigation into the cause of the incident while keeping transactions suspended.
Not investment advice.