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Allbridge pauses Core after flash-loan attack drains $1.65M from Solana pools

The attacker used a $1.12 million flash loan from Kamino to skew Allbridge Core stablecoin pool pricing, then bridged the proceeds to Ethereum.

Reported · Written up by our desk · Market Structure

Cross-chain bridge Allbridge has paused its Core protocol after an attacker drained roughly $1.65 million from its Solana stablecoin liquidity pools, according to Decrypt and blockchain security firms.

Decrypt reports that the exploit relied on a $1.12 million flash loan from Solana lending protocol Kamino to distort the pools' internal pricing. With the pool accounting mispriced, the attacker carried out rapid stablecoin swaps, including exchanging a small amount of USDT for about $2.24 million in USDC, before bridging the funds to Ethereum and dispersing them across addresses.

Allbridge told liquidity providers to withdraw from affected pools and said the pause is precautionary while it investigates. The project also urged traders who benefited from the resulting imbalance to return funds, and noted it was preparing a detailed breakdown and post-mortem.

According to Decrypt, Allbridge said there is no threat to users liquidity right now and is working on relaunching Core without liquidity pools, after the pool imbalance created a temporary arbitrage opportunity for other traders.

Latest closeEthereum $1,924.45 ▲2.8%|Solana $78.20 ▲2.4%

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