Cross chain stablecoin bridge Allbridge Core has temporarily suspended its protocol after suffering a security breach that resulted in losses of about $1.65 million. Blockchain security firm PeckShield reported that the attacker has already transferred the stolen funds from Solana to Ethereum.
Allbridge Halts Operations and Urges Users to Withdraw Funds
Following the incident, Allbridge confirmed the exploit and announced that the protocol had been paused while its team investigates the breach. The project also advised users with assets in the affected liquidity pools to withdraw their funds as soon as possible.
According to the team, the attack created a temporary arbitrage opportunity after disrupting the balance of the affected liquidity pools. Allbridge appealed to anyone who benefited from the arbitrage to voluntarily return the profits, stating that any recovered funds would be used to compensate impacted liquidity providers.
Blockchain security firm Onchain Labs revealed that the exploit began with a $1.12 million USDC flash loan obtained through Kamino on Solana. The attacker allegedly manipulated the stablecoin pool ratios by rapidly swapping USDC and USDT, allowing liquidity to be withdrawn at distorted exchange rates. After repaying the flash loan within the same transaction, the attacker moved the stolen assets through privacy protocols to obscure their trail.
Another Blow for Cross Chain Bridges
This is not the first time Allbridge has fallen victim to a flash loan attack. In April 2023, the protocol lost approximately $573,000 after an attacker exploited a smart contract vulnerability on BNB Chain. The flaw allowed token swap prices to be manipulated, resulting in the theft of nearly $290,000 in both BUSD and USDT.
The latest incident adds to a growing list of attacks targeting cross chain bridge infrastructure. In April, Syndicate Labs lost around $330,000 worth of SYND tokens after a compromised private key gave an attacker control of its Commons bridge contracts.
The following month, the Verus Ethereum bridge was exploited for more than $11 million because one of its smart contracts failed to properly validate transactions. Most of the stolen funds were later recovered.
In June, Ethereum Layer 2 network Taiko also warned users to withdraw their assets after attackers stole approximately $1.7 million from one of its bridge protocols, highlighting the continued security challenges facing cross chain infrastructure.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
