Allbridge Core Pauses Operations After $1.65M Flash-Loan Exploit

Allbridge Core has suspended protocol activity following a security incident originating on its Solana side, according to CoinDesk. The team said the pause is precautionary and urged liquidity providers in impacted pools to withdraw funds while the investigation continues. Blockchain security firm PeckShield estimated losses at about $1.65 million. Onchain analysts said the attacker rapidly bridged the assets from Solana to Ethereum shortly after the exploit, a common tactic to complicate tracing and recovery. Additional review indicates some funds may have been routed through privacy-focused infrastructure. Market watchers said the loss is small relative to Solana's overall market capitalization, limiting any immediate price impact on SOL. The report noted SOL was trading at $76.66, up 1.06% over the past 24 hours, with roughly $1.43 billion in trading volume. Investigators attributed the incident to a flash-loan-based manipulation rather than a private key compromise or a typical crosschain bridge validation flaw. The attacker allegedly borrowed around $1.12 million via a flash loan from Kamino, then repeatedly swapped USDC and USDT in Allbridge Core's stablecoin pool. That activity skewed the pool's internal exchange-rate calculations, creating an artificial imbalance. The attacker then withdrew liquidity at the manipulated price, repaid the flash loan within the same transaction, and kept the spread as profit. Onchain data referenced a single withdrawal of about $2.24 million. Experts described the event as a classic flash loan price-manipulation attack, a pattern seen repeatedly across DeFi protocols since 2020 when pool pricing relies too heavily on its own balance data, which can be briefly distorted by large borrowed funds. For Allbridge Core, analysts said the more immediate fallout may be reputational, weighing on confidence in the bridge and its related liquidity pools rather than directly moving SOL's price.