The decentralized finance sector has suffered another major security breach after TrustedVolumes, a liquidity provider used across multiple DeFi protocols, reportedly lost around $6.7 million, nearly ₹56 crore, in a crypto asset exploit.
According to blockchain analytics firm Blockaid, the attack targeted a resolver contract operated by TrustedVolumes on the Ethereum network. Investigators said the attacker drained assets including around 1,291 WETH, 206,282 USDT, 16.93 WBTC, and 1.26 million USDC.
Security researchers said the exploit showed similarities to attack methods linked to the March 2025 1inch Fusion V1 incident, although this breach used a different vulnerability route. The attacker reportedly exploited weaknesses in TrustedVolumes’ custom RFQ swap proxy infrastructure.
Experts explained that the RFQ swap proxy system handles token pricing and swaps between traders and liquidity providers. Investigators believe weak validation processes and flawed authorization controls created the entry point for the exploit.
TrustedVolumes confirmed the breach and said it identified 3 wallet addresses that received stolen funds valued at nearly $3 million, $3 million, and $700,000. The company also indicated it is open to discussions regarding a possible bug bounty and recovery process.
According to Hakan Unal, Senior Security Operations Lead at Cyvers, the exploit involved multiple technical weaknesses, including permissionless signer registration, broken replay protection, and an unverified transfer source field. These flaws allegedly allowed the attacker to impersonate a trusted signer and carry out unauthorized withdrawals.
Security experts warned that weak replay protection could have enabled repeated attacks if the issue had not been detected early.
Responding to reports connecting the breach to its ecosystem, 1inch clarified that its core systems and user funds were not affected. The company said TrustedVolumes was only 1 of several liquidity resolvers within its infrastructure.
The incident adds to a growing number of high-value DeFi exploits, including the $285 million Drift Protocol breach and the $293 million Kelp DAO exploit reported in recent months.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
