Allbridge Core lost approximately $1.65 million in a flash loan attack targeting its Solana deployment on Sunday. The attacker leveraged a $1.12 million USDC flash loan from Kamino to manipulate stablecoin exchange rates within the protocol's liquidity pool.
The exploit involved converting USDC to USDT rapidly, causing an imbalance in the stablecoin pool’s exchange rate. This manipulation allowed the attacker to withdraw funds at favorable rates, netting $1.65 million after repaying the loan.
Following the hack, stolen assets were bridged from Solana to Ethereum, then converted into ETH and routed into privacy pools to conceal their origin. In response, Allbridge paused the protocol and urged users to withdraw liquidity from affected pools while continuing its investigation.
This marks at least the sixth attack on cross-chain bridges since May 2026. Recent similar incidents include a $1.7 million loss on Ethereum’s Taiko layer-2 network and a $4.67 million exploit on Secret Network caused by a smart contract bug. Bridges like Gravity Bridge, Verus Bridge, and Butter Network have also been compromised in recent months.
Allbridge previously faced a flash loan exploit in April 2023 that drained $573,000 on the BNB Chain. The team emphasized its commitment to compensating affected liquidity providers and recovering stolen funds.
material is for informational purposes only and not financial advice
