Allbridge Core Pauses Protocol After $1.65 Million Flash Loan Exploit
Allbridge Core, a popular cross-chain bridge, has been exploited for approximately $1.65 million. The team quickly paused the protocol and asked users to withdraw liquidity from affected pools.
How the Exploit Happened
According to on-chain analysts from PeckShield, CertiK, and Onchain Lens, the attacker used a $1.12 million flash loan from Solana’s Kamino protocol.
The hacker manipulated stablecoin liquidity pool ratios by rapidly swapping USDC for USDT. They then withdrew funds at favorable rates and moved the stolen assets through privacy protocols to hide their tracks. The funds were later bridged from Solana to Ethereum.
Allbridge’s Response
In an official statement on X, Allbridge confirmed the protocol has been paused for investigation. The team urged users to withdraw their liquidity from impacted pools immediately.
The exploit created a temporary pool imbalance, opening a short arbitrage opportunity. Allbridge encouraged anyone who profited from this to return the funds to help compensate affected liquidity providers (LPs).
“Our goal is to return all affected funds to users,” the team stated.
Key Takeaways
- Amount Stolen: ~$1.65 million
- Attack Vector: Flash loan + liquidity pool manipulation
- Chains Involved: Solana (origin) → Ethereum (funds bridged)
- Current Status: Protocol paused
This incident highlights ongoing security risks in cross-chain bridges and DeFi protocols. Users are advised to stay cautious and monitor official Allbridge channels for updates.
