Allbridge Pauses Cross-Chain Protocol After $1.65M Flash Loan Attack
Allbridge paused its protocol after a flash-loan attack drained about $1.65 million from its Solana-based Core liquidity pools. The exploit used a $1.12 million flash loan from Kamino, followed by rapid stablecoin swaps that distorted Allbridge’s internal pricing and created a pool imbalance. The attacker then swapped a small amount of USDT for roughly $2.24 million in USDC, bridged the funds to Ethereum, and dispersed them across multiple addresses. Allbridge urged liquidity providers to withdraw from affected pools and said it is preparing a post-mortem while working to relaunch Core without liquidity pools. The team said it wants to recover all affected funds and asked anyone who profited from the temporary arbitrage window to return the gains to help compensate LPs. This is Allbridge’s second major flash-loan exploit, after a similar attack in 2023.
