The cross-chain bridge protocol Allbridge Core has been paused after a security incident resulted in the theft of approximately $1.65 million. The attack targeted the protocol's Solana deployment on Sunday.
The attacker executed a complex maneuver involving a $1.12 million USDC flash loan. They performed rapid swaps between USDC and USDT, which distorted the exchange rate in Allbridge Core's stablecoin pool. This created a manipulation window, allowing them to withdraw liquidity at an inflated value, repay the loan, and keep the difference.
The stolen funds were bridged from Solana to Ethereum before being moved into privacy pools. Allbridge Core urged users with liquidity in affected pools to withdraw immediately.
This is not the first time Allbridge has been targeted. A previous flash loan attack in April 2023 exploited a smart contract flaw on the BNB Chain, stealing $573,000.
The incident is part of a broader pattern of attacks on cross-chain bridges. In June, the Taiko network suffered a $1.7 million bridge exploit. Other recent victims include Secret Network, which lost $4.67 million to an infinite mint bug.