1inch Hacked: Over $5 Million Stolen in a Major Attack

The 1inch (DEX) decentralized exchange fell victim to a major cyberattack, causing losses amounting to more than $5 million. On-chain analysis shows that the attacker exploited a vulnerability in the platform's smart contract, committing a large-scale theft. How did the attack happen? On March 6, 1inch officially confirmed the breach, claiming that the attacker exploited a vulnerability in the platform's outdated Fusion v1 smart contract. This vulnerability targets the settlement entities responsible for processing orders, allowing hackers to steal a significant amount of money. However, the company ensures that users' funds remain safe, with losses limited to the affected resolvers. Despite this, the hackers managed to withdraw more than $5 million from the system. Blockchain security firm SlowMist tracked the stolen assets and identified the attacker who withdrew 2.4 million USDC and 1,276 Wrapped Ether (WETH), bringing the total stolen value to more than $5 million. After the attack, the 1inch team acted quickly, partnering with the affected resolvers to protect the platform. The company has urged all resolution kits to test and update their smart contracts to prevent further vulnerabilities. In response, 1inch has implemented a bug bounty program to incentivize ethical hackers to report potential security vulnerabilities. In addition, efforts are underway to recover the stolen funds. 1inch token price drops After the news of the hack, the 1inch token lost more than 5% of its value. Currently, the token is trading at around $0.23, reflecting a 2% decline in the last 24 hours. However, the trading volume soared by 10%, reaching $26.8 million. Technical analysis suggests that if the 1inch token can break through the $0.25 resistance, it could rise to $0.28. A strong uptrend could push the price towards $0.32. Conversely, if the price drops below $0.22, a drop to $0.19 is possible. This incident highlights the security risks in the (DeFi) decentralized finance sector, emphasizing the need for regular security audits to protect projects and users from similar attacks.