Allbridge Core Pauses Protocol After Attacker Steals $1.65 Million via Solana Flash Loan

Allbridge Core paused its cross-chain stablecoin protocol after an attacker stole roughly $1.65 million from its Solana liquidity pools. Security firms CertiK and PeckShield reported the exploit on July 20. The attacker took a $1.12 million flash loan from the Kamino lending protocol on Solana.

They used the funds to swap USDC and USDT rapidly, which shifted the pools' internal ratios and allowed withdrawals at favorable rates. The stolen assets were then bridged to an Ethereum address and dispersed across additional addresses. Allbridge said it paused operations for investigation and advised liquidity providers to withdraw from affected pools.

The company also asked traders who profited from the temporary pricing distortion to return the funds for compensation to liquidity providers. Allbridge is a bridge that enables asset transfers between blockchains that do not communicate directly. Its Core product relies on liquidity pools to move native stablecoins such as USDC and USDT without creating wrapped versions.

It is not currently clear how much of the stolen assets remains under the attacker's control. Allbridge suffered a similar flash loan attack in 2023 that drained roughly $650,000 from its BNB Chain pools. The firm recovered most of those funds and later changed its liquidity and withdrawal calculations.

Allbridge raised $2 million in 2022 to expand the bridge and fund security audits.