Cross-chain protocol Allbridge has temporarily paused its core bridge infrastructure following a security exploit that drained approximately $1.65 million from its Solana deployment. The incident marks at least the sixth major cross-chain bridge attack reported since May.
According to on-chain security telemetry, the attacker initiated the exploit by taking out a $1.12 million USDC flash loan via Kamino. The capital was deployed in rapid swap sequences across the USDC/USDT pool on Allbridge Core, severely distorting the internal exchange rate. By capitalizing on the artificially created price imbalance, the attacker withdrew pool liquidity at manipulated rates, repaid the initial Kamino flash loan, and netted $1.65 million in profit. The stolen funds were bridged from Solana to Ethereum and funneled into privacy protocols.
Allbridge has urged arbitrageurs who profited from the resulting pool imbalance to return the funds to assist in compensating affected liquidity providers. This marks the second flash loan exploit for the protocol, following a similar $573,000 breach on its BNB Chain deployment in April 2023.
