1inch Blocks Addresses Linked to Binance Exploit to Aid Asset Recovery

The decentralized finance aggregator 1inch Network has taken swift action following a security vulnerability incident involving the Binance ecosystem. On October 30, 2026, the 1inch team announced a coordinated effort to restrict the movement of illicitly obtained funds across its infrastructure. While the platform has successfully blacklisted suspicious addresses within its ecosystem, it noted that certain 1INCH tokens remains beyond the reach of technical freezes due to the inherent structure of the asset's smart contract.

Rapid Response and Cross-Platform Integration

Upon detection of the exploit, the 1inch risk management team initiated a collaboration with specialized security firms, including ZeroShadow, SEAL 911, and TRM Labs. Within the first hour of the breach, the team successfully identified and blocked malicious addresses across several key touchpoints:

• The official 1inch dApp interface;
• The native 1inch Wallet application;
• The 1inch API, which serves numerous third-party integrators.

By extending this blacklist to resolvers and integrators, the network aims to minimize the liquidity available to the attackers and prevent the further swapping of stolen assets into other cryptocurrencies or stablecoins.

The Technical Limitations of 1INCH Token Freezing

Despite the aggressive blocking of addresses at the application level, the project clarified a critical technical distinction regarding the 1INCH token itself. As a standard ERC-20 token deployed on the Ethereum blockchain, the 1INCH smart contract was designed without a centralized "freeze" or "blacklist" function.

1INCH is a standard ERC-20 token and does not have freezing or blacklisting functionality, therefore the stolen tokens cannot be frozen by anyone.

This lack of a "circuit breaker" in the token's code means that while the attackers are restricted from using the 1inch interface, they may still technically transfer the tokens through other decentralized protocols that have not implemented similar restrictions.

In the wake of the incident, 1inch has confirmed its commitment to a full investigation, working alongside Binance and relevant law enforcement agencies. The focus has now shifted to on-chain tracking and asset recovery strategies to mitigate the impact on the broader community. The team continues to update its database of identified malicious addresses as new data becomes available from blockchain forensic partners.