Allbridge Halts Cross-Chain Bridge Following $1.65 Million Hack

Allbridge has paused its Allbridge Core protocol after losing $1.65 million in a security breach on Sunday. The company confirmed the incident struck its Solana deployment, urging anyone with liquidity in the affected pools to withdraw immediately while the team investigates.

How The Attacker Pulled Off The Exploit

According to on chain data, the hacker took out a $1.12 million USDC flash loan from lending platform Kamino. That borrowed capital was then used to run a series of fast USDC/USDT swaps, throwing off the exchange rate inside Allbridge Core’s stablecoin pool. With prices skewed in their favor, the attacker withdrew liquidity at the manipulated rate, repaid the original loan, and pocketed the remaining funds. The stolen assets were later moved from Solana to Ethereum and routed into privacy pools, making recovery difficult.

Not Allbridge’s First Flash Loan Trouble

This isn’t new territory for the platform. Back in April 2023, Allbridge lost roughly $573,000 in a similar flash loan attack on its BNB Chain pool, where a contract flaw let the attacker manipulate swap prices directly.

Bridges Keep Getting Hit

This marks at least the sixth bridge exploit since May, following incidents at Taiko, Secret Network, Gravity Bridge, Verus Bridge, and Butter Network. Bridges remain popular targets since they typically hold large reserves backing assets across chains.