Allbridge Hit with $1.65M Exploit, Flash Loan Tactics Still Haunt DeFi

A decentralized cross-chain bridge called Allbridge suffered a $1.65 million exploit that led to the suspension of its core protocol.

The attacker used a flash loan from Kamino worth $1.12 million in USDC, which they then manipulated into the USDC/USDT pool ratio on Allbridge.

This distortion allowed the hacker to withdraw liquidity at favorable exchange rates before moving the stolen assets from Solana to Ethereum.

Allbridge quickly halted its core protocol and urged liquidity providers to withdraw funds from affected pools in an effort to limit further losses.