Ethereum · Cointelegraph
Allbridge pauses cross-chain bridge after $1.65 million exploit
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The attacker allegedly used a flash loan and rapid swaps to manipulate the bridge’s stablecoin exchange rate.
Key facts
- In April 2023, Allbridge was exploited for $573,000 through a flash loan attack on Allbridge’s pool on the BNB Chain
- Onchain Lens reported the attacker made a $1.12 million USDC (USDC) flash loan from Kamino, before rapid USDC/USDT swaps that distorted the Allbridge Core stablecoin pool’s exchange rate
- 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
- The attacker then withdrew liquidity at manipulated rates, repaying the $1.12 million USDC loan and keeping the difference
Summary
Allbridge, the company behind cross-chain stablecoin bridge Allbridge Core, said it has paused the protocol as a precaution after a “security incident” that reportedly saw $1.65 million drained on Sunday. The incident affected Allbridge Core’s Solana deployment, with the attacker having already bridged the stolen funds from Solana to Ethereum before moving them into privacy pools. “Allbridge Core is experiencing a security incident,” it said in a post on X on Sunday. The Allbridge Core exploit is at least the sixth attack targeting a cross-chain bridge since May.