Allbridge Core, a cross-chain stablecoin bridge, paused its protocol on Sunday after a security incident that drained $1.65 million. The attack targeted Allbridge Core's Solana deployment, with the attacker using a flash loan manipulation technique to exploit stablecoin pool exchange rates. This incident marks the sixth attack targeting a cross-chain bridge since May, as bridges remain attractive targets due to large pools of funds backing bridged assets on destination blockchains.
Allbridge Core announced the pause in a post on X on Sunday, stating: "We have paused the protocol as a precaution while we investigate. If you have liquidity in affected pools, please withdraw now." The attacker had already bridged the stolen funds from Solana to Ethereum before moving them into privacy pools.
Attacker Executes Flash Loan Manipulation on Solana Deployment
Onchain Lens reported the attacker made a $1.12 million USDC flash loan from Kamino before executing rapid USDC/USDT swaps that distorted the Allbridge Core stablecoin pool's exchange rate. The attacker then withdrew liquidity at manipulated rates, repaying the $1.12 million USDC loan and keeping the difference.
Allbridge Core addressed the pool imbalance in its statement: "The resulting pool imbalance created a temporary positive arbitrage window. If you took advantage of it, please consider returning funds... this will go directly toward compensating affected LPs."
Cross-Chain Bridges Face Six Exploits Since May
In June, Taiko, an Ethereum layer-2 blockchain, urged its users to withdraw assets from the network's bridges after attackers exploited one of its bridge protocols and stole $1.7 million. Taiko reopened its bridge 11 days later after completing a four-step recovery plan.
Weeks before the Taiko incident, Secret Network was exploited through an "infinite mint" bug on a vulnerable smart contract, which created unbacked versions of Axelar-wrapped assets, resulting in a $4.67 million exploit. Other recent bridge exploits included the Gravity Bridge, Verus Bridge, and the Butter Network.
FAQ
What happened to Allbridge Core on Sunday?
Allbridge Core paused its protocol on Sunday after a security incident that drained $1.65 million from its Solana deployment through a flash loan manipulation attack.
How did the attacker exploit Allbridge Core?
The attacker made a $1.12 million USDC flash loan from Kamino, executed rapid USDC/USDT swaps that distorted the stablecoin pool's exchange rate, withdrew liquidity at manipulated rates, repaid the loan, and kept the difference before bridging funds to Ethereum and moving them into privacy pools.
How many cross-chain bridge attacks have occurred since May?
Allbridge Core's exploit is at least the sixth attack targeting a cross-chain bridge since May, with previous incidents including Taiko ($1.7 million), Secret Network ($4.67 million), Gravity Bridge, Verus Bridge, and Butter Network.
