Allbridge Core has paused its cross-chain stablecoin protocol after losing roughly 1.65 million dollars in a flash loan attack on its Solana liquidity pools. The attacker used a 1.12 million dollar flash loan from Kamino to manipulate pool ratios before withdrawing assets and bridging them to Ethereum.
Security firms CertiK and PeckShield confirmed the exploit occurred on July 20. Allbridge said the attack distorted internal ratios in its stablecoin pools, creating an arbitrage opportunity that allowed the attacker to drain funds.
The company paused operations while investigating and urged liquidity providers to withdraw from affected pools. It also asked traders who benefited from the imbalance to return the profits for compensation to liquidity providers.
This marks the second such incident for Allbridge. A similar flash loan attack in 2023 drained about 650,000 dollars from its BNB Chain pools. The firm later recovered most of those funds and updated its calculations.
