1inch managed to recover most of the stolen 5 million USD after negotiations with the hacker, who retained a portion as a bug bounty. The breach was traced back to an outdated smart contract affecting a third-party market maker, sparing users from financial loss.

Following the incident, 1inch is boosting its security protocols by enforcing updated audit requirements and emphasizing the transition to Fusion v2 to mitigate future vulnerabilities in the DeFi space.