Another day, another hack. This time, decentralized exchange aggregator 1inch has fallen victim to a major hack, resulting in a loss of over $5 million. On chain experts suggest that a hacker found a vulnerability in one of 1inch’s smart contracts, leading to the massive theft.
Following the attack, the price of the 1inch token dropped by 5%, causing concern among users. But how exactly did the hacker pull this off?
How the Hacker Stole $5 Million?
On March 6, 1inch officially confirmed the hack through a tweet, explaining that the attacker took advantage of a flaw in the outdated Fusion v1 smart contract. This vulnerability specifically impacted resolver entities, which are responsible for filling orders on the platform.
The good news is that user funds remained secure, as the losses were limited to the affected resolver contracts. However, this didn’t stop the hacker from making a huge profit.
However, blockchain security firm SlowMist traced the stolen funds, revealing that the hacker managed to steal 2.4 million USDC and 1,276 Wrapped Ether (WETH), totaling over $5 million.
1inch’s Quick Response to the Attack
As soon as the exploit was discovered, the 1inch team acted fast. They immediately started working with affected resolvers to secure their systems and prevent further losses. The platform also urged all resolvers to audit and update their smart contracts to avoid similar attacks.
To strengthen security, 1inch announced a bug bounty program, encouraging ethical hackers to find and report any vulnerabilities before bad actors can exploit them. Additionally, efforts are being made to recover the stolen funds.
1inch Price Outlook
Following news of the hack, the 1inch token price tumbled more than 5% as panic spread among investors. As of now, the 1inch token is trading around $0.23, reflecting a 2% drop in the last 24 hours. However, its trading volume has spiked by 10%, now hovering around $26.8 million.
Technical analysts suggest that if 1inch manages to break above the key resistance level of $0.25, its price could climb to $0.28. A strong bullish push might even send it soaring to $0.32. On the downside, if the price drops below $0.22, it could sink further to $0.19.
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