1inch Faces $5M Exploit After Hackers Target Fusion v1 Contract

• On March 5, 2025, hackers exploited a vulnerability in Fusion v1’s outdated smart contract, draining over $5 million in assets.
• The attack highlights the risks of using outdated protocols in DeFi, urging rapid upgrades to prevent future security breaches.

Recently, 1inch, a liquidity aggregator platform, was attacked using a vulnerability in its outdated smart contract. Hackers thus managed to pilfer approximately $5 million worth of cryptocurrencies. This event reminds us of the need for change systems to more recent, safer versions.

Outdated Code in Fusion v1 Exposes 1inch to $5M Exploit

The 1inch team found suspicious activities on March 5, 2025, that resulted in the Fusion v1 smart contract being exploited outdatedly. Using the weaknesses in the legacy code, hackers drained approximately 2.4 million USDC and 1,276 WETH—worth more than $5 million.

Fusion v1 itself is not supported by 1inch anymore. Although some resolvers are still utilizing the outdated, insecure version, Fusion v2, the most recent edition includes greater security measures. This is a crucial lesson for everyone who falls behind on upgrades in an open-source environment such as DeFi; hackers will find easy targets here.

DeFi Security and the Importance of Rapid Updates

This episode highlights how perilous it is to combine technological innovation without security improvements. They always advise all integration partners—including resolvers—to update immediately when 1inch releases a new version of its protocol. Not all people, though, heed this advice; finally, some are still running with systems with security flaws.

In the crypto space, this kind of attack is not novel. Like robbers targeted at homes without alarms or doors with antiquated locks, hackers often search for weaknesses in old, unsupported systems. While mitigating strategies have been put in place, the truth is that some people still lack knowledge of the great risks involved in postponing security upgrades.

1inch Swap API Integration by Rango Exchange

Among this negative news, there is encouraging development showing that many other platforms still trust 1inch. Rango Exchange declared on March 6, 2025, that they now use the 1-inch Swap API. This action seeks to increase for its users trading experience, liquidity, and execution efficiency.

Traders on Rango Exchange can benefit from more ideal trade execution with this integration. Conversely, this also demonstrates that 1inch stays a popular choice in the DeFi ecosystem even with the security problem.

Enhanced Wallet Security with Ledger Stax and Flex Support

Fascinatingly, 1inch also keeps working to enhance security for their consumers using their digital wallet. 1inch Wallet now supports Ledger Stax and Ledger Flex, two devices meant to increase transaction security with simple-to-use E-Ink touchscreen capabilities, according to CNF.

Tony Fadell, the man behind the popularity of the iPod, developed Ledger Stax. This device lets users personalize the 3.7-inch curved E-Ink screen using NFTs or images of their own choosing. Ledger Flex stresses security even though its 2.8-inch flat screen is more basic.

Though there is encouraging news about platform development, the effect of this cyber attack is still felt in the industry. The 1INCH token is trading at about $0.2262 at the time of writing; it dropped 1.04% over 24 hours and 6.84% over the last 7 days. This fluctuation in prices captures the response of the market to the most recent incident.