Allbridge Core on Solana experienced a $1.65 million exploit triggered by a $1.12 million USDC flash loan that manipulated the USDC/USDT liquidity pool ratio. This allowed the attacker to withdraw nearly $949,000 USDT at inflated rates before transferring assets to Ethereum.
The attacker used a flash loan from Kamino to perform multiple swaps between USDC and USDT, causing significant price distortion in the pool. The resulting imbalance increased withdrawal value under the manipulated exchange rate, culminating in a $2.24 million USDC movement through the Allbridge bridge.
Prior to the exploit, Allbridge Core's total value locked (TVL) hovered around $21.61 million. Following the incident and the protocol's suspension, TVL plunged sharply to $12.78 million as liquidity providers withdrew funds amid heightened risk.
The protocol halted operations promptly and urged liquidity providers to exit affected pools to prevent further losses. Developers are investigating the breach, which targeted the pricing mechanism rather than cross-chain transfers directly.
The event shows vulnerabilities in DeFi applications despite security measures, highlighting the need for enhanced pricing resilience and liquidity protection in growing cross-chain ecosystems.
This material is informational and not financial advice.
