Allbridge Core Protocol Paused After $1.1 Million Flash Loan Exploit

Allbridge Core has paused its protocol after an attacker drained over $1.1 million from its stablecoin liquidity pools. The incident, identified by Onchain Lens, hit the Solana network, forcing an immediate operational halt. This adds to a growing list of DeFi exploits, with July alone seeing $57.8 million in losses.

The attacker executed a sophisticated flash loan maneuver. Using $1.12 million in USDC from Kamino, they rapidly swapped assets within Allbridge's USDC/USDT pool, distorting ratios. This allowed them to withdraw liquidity at inflated values, netting roughly $1.1 million before repaying the flash loan within the same transaction.

Stolen funds were subsequently routed through privacy protocols, obscuring their trail. Allbridge has initiated an investigation and appealed to any traders who profited from the brief arbitrage window to return funds, aiming to compensate affected liquidity providers. The protocol remains offline.

This isn't Allbridge's first security challenge. A similar flash loan exploit targeted the protocol in April 2023, resulting in approximately $570,000 in losses on the BNB network. The repeated incidents highlight persistent vulnerabilities in cross-chain bridge architectures.