TLDR
- 1inch exchange lost $5 million due to a smart contract vulnerability in outdated Fusion v1 contracts
- Hacker stole 2.4 million USDC and 1,276 Wrapped Ether (WETH) from resolvers, but end-user funds remained safe
- 1inch responded by working with affected resolvers and launching bug bounty programs
- After the hack, the 1inch token price dropped 5% but saw a 10% increase in trading volume
- The platform urged all resolvers to audit and update their contracts to prevent similar exploits
Decentralized exchange aggregator 1inch has confirmed a $5 million hack resulting from a vulnerability in its smart contracts. The exploit, which occurred on March 5, targeted resolvers using outdated Fusion v1 contracts.
The hack was made public on March 6 when 1inch officially acknowledged the security breach. The company assured users that only resolver entities were affected, and end-user funds remained secure throughout the incident.
We’re actively working with affected resolvers to secure their systems.We urge all resolvers to audit and update their contracts immediately. For more details and bug bounty info (inc. funds return), visit: https://t.co/obLdWF2c6W
— 1inch (@1inch) March 6, 2025
Blockchain security firm SlowMist conducted an on-chain investigation of the attack. Their analysis revealed that the hacker made off with 2.4 million USDC and 1,276 Wrapped Ether (WETH) tokens.
These stolen assets add up to the $5 million total reported by 1inch. The platform clarified that the vulnerability was specific to resolvers using the Fusion v1 implementation in their contracts.
Resolvers play a key role in the 1inch ecosystem. They are responsible for filling orders on the decentralized exchange platform.
According to our analysis, this incident resulted in a loss of 2.4 million $USDC and 1276 $WETH, totaling over $5 million.
— SlowMist (@SlowMist_Team) March 7, 2025
1inch took immediate action after discovering the exploit. The team began working with affected resolvers to secure their systems against further attacks.
The platform issued an urgent warning to all resolvers. They were advised to audit and update their contracts immediately to prevent similar exploits from occurring.
To strengthen security measures, 1inch announced bug bounty programs. These programs aim to identify and fix any other vulnerabilities that might exist in the system.
The exchange is also making efforts to recover the stolen funds. However, success will likely depend on whether the hacker agrees to return them.
Past incidents in the crypto space show mixed results for fund recovery. Some hackers have returned funds after keeping 10% as a “white hat” bounty, as seen with crypto lender Shezmu.
1inch Token Price
The 1inch token price reacted to news of the hack. It dropped by approximately 5% as investors responded to the security breach.
Despite the price drop, trading volume for the 1inch token increased by 10%. Current trading volume sits around $26.8 million according to market data.
Technical analysts have identified key price levels for the 1inch token. They suggest that breaking above $0.25 resistance could push the price to $0.28 or potentially $0.32.
On the downside, if the price falls below $0.22, it might decrease further to $0.19. These projections come as the market absorbs news of the hack.
