Allbridge has suspended operations after a flash loan attack led to a theft of $1.65 million from its liquidity pools on Solana.
Allbridge Core has suspended its operations following a significant flash loan exploit that resulted in the theft of approximately $1.65 million from its Solana liquidity pools.
The attacker executed a $1.12 million flash loan from Kamino, which was used to manipulate pool ratios, allowing the withdrawal of assets at favorable rates before bridging them to another blockchain. This kind of loan is unique as it is taken and repaid within the same transaction.
After the exploit, the stolen assets were bridged to an Ethereum address and subsequently dispersed to various other addresses, leaving the extent of the attacker's control over these assets uncertain.
In light of this incident, Allbridge has paused its protocol for an investigation and urged liquidity providers to withdraw their funds. The company also called on traders who profited from the manipulated pool ratios to return their gains to compensate affected liquidity providers.
This incident marks a troubling recurrence for Allbridge, which faced a similar flash loan attack in 2023 that resulted in a loss of around $650,000 from its BNB Chain pools. The company managed to recover a majority of those funds and made adjustments to its liquidity and withdrawal calculations following that event.
Allbridge, which facilitates cross-chain transfers of native stablecoins like USDC and USDT, had previously raised $2 million to enhance its security protocols and undergo audits, highlighting the ongoing challenges in maintaining security in the decentralized finance space.
