TrustedVolumes hacker returns $2M in ETH, keeps similar bounty

A hacker returned 1,122 ETH ($2M) to TrustedVolumes after a $5.8M exploit, keeping a similar amount as a bug bounty. The case highlights DeFi’s trend toward direct settlements with attackers.

A hacker responsible for the May exploit of TrustedVolumes, a liquidity resolver associated with 1inch Fusion, has returned 1,122.12 ETH—worth around $2.07 million—over two months after the $5.8 million breach. This amount represents about half of the stolen funds, with the hacker reportedly retaining a similar sum as part of a negotiated bug bounty agreement. Both parties confirmed the settlement through an on-chain message. TrustedVolumes also invited any other attackers involved in the exploit to negotiate further settlements, signaling a willingness to resolve such incidents directly. This case underscores a growing trend in decentralized finance: direct negotiations and settlements with attackers are increasingly preferred over lengthy recovery or legal processes. While this can speed up the return of stolen assets, it also raises concerns that such deals may incentivize future exploits by making bug bounty negotiations an attractive exit strategy.