Allbridge exploited for up to $1.65M, protocol paused
6.6 Security Allbridge lost up to $1.65M after its Solana stablecoin pools were exploited. The protocol is paused, and an investigation is ongoing.
Allbridge, a cross-chain bridge protocol, experienced a significant exploit with losses estimated between $1.1 million and $1.65 million. The attacker manipulated stablecoin liquidity pools on the Solana blockchain, utilizing a $1.12 million USDC flash loan to distort USDC/USDT pool ratios and withdraw inflated liquidity. After the exploit, the stolen funds were swiftly bridged from Solana to Ethereum and routed through privacy protocols to obscure their trail. In response, Allbridge paused its protocol, advised affected liquidity providers to withdraw their funds, and urged arbitrage users to return profits for possible compensation. This incident underscores persistent vulnerabilities in cross-chain DeFi protocols and has triggered an ongoing investigation into the exploited smart contract logic.
