The tweet was deleted by the author.
But we saved everything 🙂.
TrustedVolumes, a liquidity provider and market maker connected to the 1inch decentralized exchange aggregator, was exploited for approximately $5.87 million. According to blockchain security firm Blockaid, the attacker drained funds from the company’s Ethereum resolver contract.
The stolen assets included 1,291.16 WETH, 206,282 USDT, 16.939 WBTC, and 1,268,771 USDC. The exploit targeted a custom RFQ (Request for Quote) proxy server operated by TrustedVolumes, rather than the standard user trading route on 1inch.
In its statement, 1inch has confirmed that neither 1inch nor any of the 1inch protocols are involved in this incident. There has been no impact on 1inch systems, infrastructure, or user funds. TrustedVolumes operates independently as a liquidity provider and is utilized by multiple protocols across the industry. It is not exclusive to 1inch.
Blockaid linked the incident to the same attacker responsible for exploiting a vulnerability in 1inch Fusion V1 in March 2025. However, this attack involved a different vulnerability—one specific to TrustedVolumes’ custom RFQ proxy contract. Security firm CertiK reported that the attacker used a public function to register as an AllowedOrderSigner and then executed orders that transferred pre-authorized funds from the victim’s address.
The incident highlights the ongoing risks in decentralized finance, particularly with third-party components and custom smart contracts. Even projects integrated with major aggregators like 1inch remain vulnerable if additional infrastructure is not properly secured.
This latest exploit serves as a reminder that sophisticated attackers continue to target permission mechanisms and proxy contracts, often leading to multi-million-dollar losses. Experts recommend that users revoke approvals related to compromised contracts to limit further risk.
We also reported that the Lazarus Group linked to the biggest DeFi exploit of 2026.