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Allbridge Core Pauses After $1.65M Flash‑Loan Exploit

Investigators are tracing bridged funds after an attacker used a $1.12 million Kamino flash loan to skew Allbridge’s USDC/USDT pool ratios then move proceeds to Ethereum.

Overview

  • The exploit, which occurred over the weekend, drained stablecoins from Allbridge Core’s Solana pools and forced the protocol to pause while teams investigate.
  • On-chain analysts say the attacker took a $1.12 million USDC flash loan from Kamino, executed rapid USDC/USDT swaps to distort pool pricing, withdrew liquidity at the manipulated rate, and repaid the loan in the same transaction.
  • Estimates of the loss vary across security firms with Onchain Lens reporting more than $1.1 million extracted and PeckShield, CertiK and multiple outlets placing the figure around $1.65 million.
  • Allbridge urged liquidity providers to withdraw from affected pools and asked traders who profited from the temporary arbitrage to return gains for LP compensation, but it has not released a technical post‑mortem or said when Core will reopen.
  • Security firms including PeckShield, CertiK, Arkham and Onchain Lens are tracing addresses as stolen funds were bridged to Ethereum and converted, a pattern that highlights persistent flash‑loan and pool‑pricing risks for cross‑chain bridges.