Allbridge Core pauses operations after $1.65M flash loan exploit

Cross-chain bridge Allbridge has paused its Core protocol after an attacker stole approximately $1.65 million from its Solana stablecoin liquidity pools. The exploit involved a $1.12 million flash loan from lending protocol Kamino, which the attacker used to skew the pools' internal pricing. This allowed the attacker to extract assets cheaply before bridging them to Ethereum and scattering them across multiple addresses. Allbridge has urged liquidity providers to withdraw funds from affected pools and requested that traders who profited from the resulting pool imbalance return the funds to compensate those affected. This incident is the second time Allbridge has been targeted, following a similar exploit on its BNB Chain pools in April 2023. Cross-chain bridges remain a frequent target for DeFi hacks due to the large amounts of assets they hold.