The assailant utilized a $1.12 million flash loan from Kamino to alter pool ratios, allowing asset withdrawals at advantageous rates prior to bridging funds.
By Francisco Rodrigues, AI Boost|Edited by Jamie Crawley Jul 20, 2026, 9:31 a.m. 1 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Glasses in front of monitors with code (Kevin Ku/Unsplash)SummaryShow- Allbridge Core has halted its protocol after a flash loan exploit resulted in a theft of $1.65 million from its Solana liquidity pools.
- The attacker manipulated pool ratios using a $1.12 million flash loan from Kamino, allowing them to withdraw assets at favorable rates before bridging.
- Allbridge has paused its operations for an investigation and advised liquidity providers to withdraw, also requesting that traders who profited from the imbalance return their gains.
Allbridge Core has suspended its cross-chain stablecoin protocol after an attacker stole approximately $1.65 million from its liquidity pools on Solana, as reported by security firms CertiK and PeckShield.
Allbridge serves as a bridge, enabling users to transfer assets between blockchains that lack direct communication. Its Core product relies on liquidity pools for transferring native stablecoins like USDC and USDT without the need for wrapped asset versions.
The attacker executed a $1.12 million flash loan from Solana lending protocol Kamino, swiftly swapping USDC and USDT, which allowed them to manipulate the internal ratios of the pools before withdrawing assets at advantageous rates, according to Onchain Lens. A flash loan is characterized as a loan that is taken and repaid within the same transaction.
The stolen assets were then bridged to an Ethereum address and subsequently dispersed across various other addresses. The current extent of the attacker's control over these assets remains unclear.
Allbridge announced that it has paused the protocol for an investigation and advised liquidity providers to withdraw from the affected pools. The initial manipulation resulted in imbalanced pools, leading to a temporary arbitrage opportunity. Allbridge has requested that traders who benefited from this pricing distortion return the funds for liquidity provider compensation.
Allbridge previously experienced a flash loan attack in 2023, which resulted in the loss of around $650,000 from its BNB Chain pools. The company later reported that it successfully recovered a majority of the funds and adjusted its liquidity and withdrawal calculations. In 2022, Allbridge had raised $2 million to enhance the bridge and finance security audits.
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Why it matters:
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