Key facts
- Allbridge Core paused its cross-chain bridge due to a security incident.
- Approximately $1.65 million was lost in the exploit.
- The attacker used a flash loan and manipulated stablecoin exchange rates.
- Funds were moved from Solana to Ethereum and then into privacy pools.
- The incident is one of several targeting cross-chain bridges since May.
Allbridge Core, a cross-chain stablecoin bridge, has paused its protocol following a security incident that reportedly resulted in the loss of $1.65 million. The attacker allegedly exploited the bridge's Solana deployment by using a $1.12 million USDC flash loan from Kamino. Rapid swaps between USDC and USDT distorted the stablecoin pool's exchange rate, allowing the attacker to withdraw funds at manipulated rates. The stolen assets were then moved from Solana to Ethereum and subsequently into privacy pools. Allbridge Core has appealed for the return of funds to compensate affected liquidity providers. This incident marks at least the sixth attack on a cross-chain bridge since May, highlighting their vulnerability due to the large pools of funds they often hold. Other recent bridge exploits include those targeting Taiko, Secret Network, Gravity Bridge, Verus Bridge, and the Butter Network.