The aggregator of the decentralized exchange (DEX) 1inch experienced a critical violation of his smart contracts last week. However, following negotiations with the pirate, the exchange managed to recover most of the $ 5 million stolen.
Despite the recovery, the attack highlights the current security challenges within the Defi ecosystem.
1inch recovers most of its stolen funds
1INCH experienced this particular violation on March 5. Investigators attributed it to a vulnerability in an obsolete version of the intelligent platform contract. After discussions and a generous bug bonus, the attacker returned the funds.
“After negotiations with the pirate, most of the $ 5 million stolen from 1 inch were returned, the pirate keeping a game as a bug bonus,” said Wublockchain, citing the post-mortem report of Decurity.
1INCH explained in the blog of March 7 that the violation was caused by a flaw in the intelligent fusion v1 resolver contract, an obsolete platform component. The team detected the incident around 6 p.m. UTC on March 5.
The attackers exploited obsolete logic within merger V1 to execute involuntary transactions.
In particular, no end user has been directly affected, as the attack targeted a third -party market, trustedvolumes. During the discovery of the violation, 1 Inch quickly redesigned its resolver contracts as a precautionary safety measure, preventing other exploits.
According to Decurity’s post-mortem report, the pirate launched a chain message after the attack. They asked for a bug bonus in exchange for the return of the stolen funds.
Trustedvolumes, the affected market market, undertook negotiations with the attacker, leading to a successful resolution.
This resolution marks a rare example in which a Defi feat led to the voluntary return of stolen assets. It reflects the growing trend of ethical hacking and white hats negotiations in the DEFI industry.
Security remains a major challenge for 1 inch
This incident marks the second time in six months that 1inch faced a security violation. In October 2024, the platform underwent a frontal compromise due to an attack by the supply chain.
In addition, it highlights the persistent risks of meeting the protocols DEFI. The last hack is another recall of the need for continuous monitoring and rapid response mechanisms to protect users and assets.
Despite the recovery, the 1 inch price has only increased by a modest by 1.12% since the opening on Sunday and was negotiated at $ 0.23 when writing this document.
This incident highlights the importance of continuous intelligent contract audits and detection of proactive vulnerability. It also indicates the need for stronger validation mechanisms to prevent similar incidents in the future.
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