“The next step to resume normal operations is to return NAV to the correct value,” Swell wrote in its verified X account’s Oct. 23 update. It said it was working with security partners and Seal911 to secure its infrastructure, adding: “All funds are safe.”
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Repricing Is Paused, Too
The incident concerns the mechanism that records how much $ETH each token represents. Swell’s documentation says the swETH exchange rate determines how many tokens depositors receive and how much $ETH is returned when they unstake. An inflated rate therefore distorts those conversions; it does not itself add assets to the pool.
As The Defiant previously reported, researchers flagged apparent abuse of Swell’s repricing permissions. Phylax Systems founder Odysseus described three swETH and two rswETH increases of roughly 1% each, involving inflated reserves labeled “transitioning.” He stressed that the reported 2,513 $ETH held was not a confirmed loss.
Both access-control contracts also show bot methods paused. The published swETH oracle code requires the BOT role to submit repricing snapshots and rejects submissions while that pause is active.
Pausing that path is distinct from revoking the key’s permissions. Swell’s latest statement did not announce a revocation, and the two access managers’ swETH and rswETH event histories show pause events but no role-revocation event since the incident began.
For holders, the displayed rate is also not necessarily the eventual withdrawal payout. Swell’s published swETH withdrawal contract uses the lower of the exchange rate when a request was created and the rate when it was processed to calculate the final $ETH claim.
