1inch Faces Security Breach: $5 Million Lost in Smart Contract Exploit
09.03.2025 10:54
Blockchain security firm SlowMist reported that DeFi aggregator 1inch suffered a significant exploit, resulting in over $5 million in losses due to vulnerabilities in its resolver smart contracts. Although users remained largely unaffected, the breach emphasized the risks associated with outdated frameworks. Following the incident, 1inch has initiated a bug bounty program to improve security, despite a drop in market share. Despite this setback, 1inch continues to hold a dominant position in the DeFi sector, highlighted by a substantial increase in DEX trading volume.
The news of the exploit could negatively impact 1inch's market perception, leading to potential price declines as investors react to the security concerns.
The exploit involved a substantial amount of USDC, which could lead to scrutiny of its usage in DeFi platforms.
The loss of WETH in the exploit could create selling pressure, affecting its market price.