Swell hot key compromise inflates swETH and rswETH rates, researchers warn

Researchers flagged inflated swETH and rswETH exchange rates after a compromise of a Swell hot key, raising concerns about the integrity of the protocol's liquid restaking tokens. The incident highlights how key compromises can distort DeFi pricing and underscores the need for stronger security controls. Traders holding or pricing swETH and rswETH should watch for rate corrections and possible contagion across restaking-linked DeFi positions.