Decentralized exchange aggregator 1inch has managed to recover most of the $5 million lost due to a recent security breach after negotiations with the hacker, who retained a portion as a reward.
Recovery of Funds after 1inch Hack
Security firm Decurity revealed that the attacker exploited a vulnerability in the old 1inch Fusion v1 smart contract due to a data suffix processing error. Unauthorized transactions were recorded, causing significant losses for the market entity TrustedVolumes. However, regular users' funds were not affected.
New 1inch Security Measures against Future Threats
In response to the incident, 1inch collaborated with affected parties to mitigate risks and recommended updating all smart contracts. A bug bounty program was initiated to reward individuals who identify vulnerabilities before they can be exploited by malicious actors.
Consequences for 1INCH Token
Following the hack, the 1INCH token price dropped over 5%. It is currently trading around $0.227, with a 35% decrease in trading volume over the past 24 hours.
The 1inch incident highlights the importance of thorough code verification and improved threat modeling to prevent future occurrences.
