$1 Million Attack Hits Allbridge Core: Exploiter Manipulates Stablecoin Pools

Financial news broke that Allbridge Core temporarily paused its protocol after suffering an attack that drained over $1 million in USDC funds. The attacker exploited the stablecoin liquidity pools on Solana, manipulating the pool's ratios before withdrawing liquidity at inflated values.

The attacker used a $1.12 million USDC flash loan from Kamino to execute the transaction, repaying the loan within the same transaction and extracting approximately $1.1 million in the process.

According to blockchain tracker Onchain Lens, the stolen funds were later routed through privacy protocols to obscure their movement. The post also identified a single withdrawal of $2.24 million USDC.

Allbridge has since opened an investigation into the incident and is seeking recovery of the affected funds. The team asked traders who profited from the imbalance to return the funds, stating that they aim to compensate all affected LPs.