The decentralized exchange (DEX) aggregator 1inch has fallen victim to a significant cyberattack, resulting in losses exceeding $5 million. On-chain analysis revealed that the attacker exploited a vulnerability in the platform’s smart contracts, executing a large-scale theft.
How Did the Attack Happen?
On March 6, 1inch officially confirmed the breach, stating that the attacker exploited a flaw in the platform’s outdated Fusion v1 smart contract. This vulnerability targeted resolver entities responsible for processing orders, allowing the hacker to steal a substantial amount of funds. However, the company assured that user funds remain secure, with the losses limited to the affected resolvers. Despite this, the hacker successfully drained more than $5 million from the system.
Blockchain security firm SlowMist tracked the stolen assets, identifying that the attacker siphoned 2.4 million USDC and 1,276 Wrapped Ether (WETH), bringing the total stolen value to over $5 million.
Following the attack, the 1inch team acted swiftly, collaborating with affected resolvers to secure the platform. The company urged all resolvers to audit and update their smart contracts to prevent further vulnerabilities. In response, 1inch launched a bug bounty program to encourage ethical hackers to report potential security loopholes. Additionally, efforts are underway to recover the stolen funds.
1inch Token Price Drops
Following news of the hack, the 1inch token lost more than 5% of its value. Currently, the token is trading at approximately $0.23, reflecting a 2% decline in the past 24 hours. However, trading volume surged by 10%, reaching $26.8 million.
Technical analysis suggests that if 1inch token can surpass the $0.25 resistance level, it may rally toward $0.28. A strong upward trend could push the price to $0.32. Conversely, if the price falls below $0.22, a potential decline to $0.19 is possible.
This incident highlights the security risks in the decentralized finance (DeFi) sector, emphasizing the need for regular security audits to protect projects and users from similar attacks.
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