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Delayed · 22:06 UK

TrustedVolumes exploit drains $6.7M as 1inch distances itself

TrustedVolumes confirmed a $6.7 million exploit on Thursday, with stolen funds now sitting across three Ethereum addresses. The independent market maker, which operates as a resolver for 1inch Fusion, said two wallets hold roughly $3 million each and a third holds about $700,000. The firm posted on X that it was open to a bug bounty and a negotiated resolution.

The TrustedVolumes exploit was first flagged by Blockaid, which detected unauthorised activity through its monitoring system. Blockaid initially pegged the loss at $5.87 million, including Wrapped Ether, USDT, Wrapped Bitcoin, and USDC. CertiK later identified the attack vector: the attacker registered as an authorised order signer via a public function, then used that permission to drain funds from targeted wallets.

TrustedVolumes exploit structure and impact

The exploit hit TrustedVolumes’ custom swap infrastructure, which the firm operates independently. The attack did not breach the core 1inch protocol. TrustedVolumes acts as a liquidity provider across multiple protocols, including 1inch, but runs its own contracts. That separation meant user funds held directly within 1inch’s infrastructure remained untouched.

1inch moved quickly to clarify the position. In a post on X, the platform said reports linking it to the TrustedVolumes exploit were misleading.

Published by Financial News

Written by

Martin Holloway

Martin Holloway spent the better part of two decades on bank trading floors in the City before he started filing copy. He read Economics at a redbrick university, joined a graduate scheme at one of the UK clearers in the late 1990s, and moved across to fixed income early in his career. The bulk of his time was on macro…

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