$1.65M Exploit Hits Allbridge Core Cross-Chain Bridge

Another cross-chain bridge has fallen victim to an exploit, this time Allbridge Core. The company behind the protocol paused it as a precaution after a security incident on Sunday that saw $1.65 million drained.

The attack targeted Allbridge's Solana deployment, and the attacker bridged the stolen funds from Solana to Ethereum before moving them into privacy pools.

Allbridge warned users with liquidity in affected pools to withdraw their funds immediately, stating 'If you have liquidity in affected pools, please withdraw now.'

This is at least the sixth attack on a cross-chain bridge since May. Bridges are attractive targets for attackers due to the large pools of funds that back bridged assets on destination blockchains.

Onchain Lens reported that the attacker made a $1.12 million USDC flash loan from Kamino, before rapid USDC/USDT swaps that distorted Allbridge Core's stablecoin pool exchange rate. The attacker then withdrew liquidity at manipulated rates, repaying the USDC loan and keeping the difference.

This isn't the first time Allbridge has been hit by a flash loan attack; in April 2023, it was exploited for $573,000 through a similar attack on its BNB Chain pool.