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Allbridge pauses cross-chain bridge after $1.65 million exploit

The incident targeted Allbridge Core’s Solana deployment, and the attacker allegedly moved funds from Solana to Ethereum before using privacy pools.

Reported · Written up by our desk · Market Structure

Allbridge has paused its cross-chain stablecoin bridge protocol, Allbridge Core, as a precaution after a security incident that reportedly drained $1.65 million on Sunday, according to Cointelegraph.

The pause applies to the protocol’s Solana deployment, with the attacker allegedly bridging stolen funds from Solana to Ethereum before moving them into privacy pools, the outlet reported.

Cointelegraph said onchain analysis indicated the attacker used a flash loan and rapid swaps to manipulate Allbridge Core’s stablecoin exchange rate. The attacker allegedly took a $1.12 million USDC flash loan from Kamino, conducted USDC/USDT swaps that distorted the stablecoin pool’s exchange rate, withdrew liquidity at manipulated rates, repaid the loan, and kept the difference.

The outlet also noted that the Allbridge Core exploit is at least the sixth cross-chain bridge attack since May, and referenced prior bridge incidents, including an April 2023 exploit that drained $573,000 from Allbridge’s pools and a June event involving Taiko’s bridge after a $1.7 million theft.

Latest closeEthereum $1,898.87 ▲1.5%|Solana $77.54 ▲1.6%

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