Allbridge Core Bridge Suspended Following $1.65 Million Flash-Loan Exploit on Solana
AI Market Summary
Allbridge halted its Core bridge after a ~$1.65M flash-loan-driven pool manipulation drained Solana-based USDC/USDT liquidity, with proceeds bridged to Ethereum and dispersed. The pause and LP withdrawal warning tighten cross-chain liquidity and elevate counterparty risk for Solana DeFi venues interacting with bridge flows. The incident also undermines confidence in Allbridge's post-2023 architecture changes, increasing near-term operational and security scrutiny.
Impact level
● Medium
Affected assets
SOL/USDT+2.15%
AI Insight · SOL/USDTAI Insight
▼ Bearish
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On July 20, cross-chain protocol Allbridge suspended its Core bridge operations following a security breach that resulted in the loss of approximately $1.65 million from its Solana liquidity pools. According to reports from blockchain security firms PeckShield and CertiK, the attacker utilized a $1.12 million flash loan from the Solana-based lending protocol Kamino to manipulate USDC and USDT pool ratios. This price distortion allowed the exploiter to withdraw assets at favorable rates before bridging the stolen funds to Ethereum. Onchain analyst Onchain Lens noted that the incident mirrors a 2023 attack on Allbridge's BNB Chain pools. Despite previous architectural redesigns intended to prevent such exploits, the current breach targeted a multi-stablecoin configuration. Allbridge has urged liquidity providers to withdraw funds immediately and is seeking the return of profits from arbitrageurs to compensate affected users.
