1inch Network Targeted in $5 Million Cryptocurrency Hack

In March 2025, the 1inch Network was targeted by a $5 million cryptocurrency hack, affecting 1INCH, WETH, and USDC tokens. The hack underscores the importance of smart contract security and prompted market discussions on DeFi safety measures.

1inch Network experienced a security breach in March 2025, resulting in a significant loss of $5 million in cryptocurrency assets. The hack reportedly affected several tokens, including 1INCH, WETH, and USDC, according to PANews. Following the hack, the 1inch Network initiated recovery efforts, with an impressive 90% of the stolen funds reportedly retrieved. This event caused a noticeable effect on market confidence, with TVL decreasing from $1.6 billion to $1.4 billion shortly after.

1inch Network Recovers 90% After $5 Million Hack

Sergej Kunz, co-founder of 1inch Network, emphasized the necessity for frequent smart contract audits. This statement mirrors sentiments expressed by Ethereum's co-founder, Vitalik Buterin, who stressed the significance of regular upgrades.

We've identified a vulnerability affecting resolvers using the outdated Fusion v1 implementation. Our team is working to secure affected systems. All resolvers should audit and update their contracts immediately.

"We've identified a vulnerability affecting resolvers using the outdated Fusion v1 implementation. Our team is working to secure affected systems. All resolvers should audit and update their contracts immediately." — Sergej Kunz, Co-founder, 1inch Network, tweeted on March 7, 2025.

DeFi Security in Spotlight as Hacks Surge in 2025

Did you know? In 2025, over 60 cryptocurrency hacks were reported, resulting in $1.63 billion in losses, significantly up from the previous year's $706 million.

1inch Network (1INCH) saw its trading volume fluctuate significantly, with a 24-hour volume of $21.83 million, marking a 50% change, according to CoinMarketCap. The price recorded a 1.33% rise over the past 24 hours but experienced a notable 50.62% decline in 90 days.

Experts from the Coincu research team suggest the hacking trend indicates potential regulatory challenges for DeFi protocols. This event stresses the necessity for enhanced security measures and regulatory attention to protect investor interests. Analysis indicates that robust security and effective audits are key to maintaining market trust.