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Allbridge paused Allbridge Core following an exploit estimated by PeckShield at about $1.65 million. Onchain Lens said the attacker used a $1.12 million USDC flash loan from Kamino to manipulate the protocol's USDC/USDT pool ratio and withdraw liquidity at distorted rates.
Why it matters
The incident highlights the risks facing cross-chain liquidity pools when flash-loan capital can alter pricing inputs within a single transaction. Allbridge urged liquidity providers in affected pools to withdraw their funds.
Market impact
The attacker bridged the stolen funds from Solana to Ethereum, extending the incident across two ecosystems. The immediate focus is on remaining pool liquidity and the status of Allbridge Core following the pause.
Frequently asked questions
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How was the Allbridge Core exploit carried out?
Onchain Lens said the attacker used a $1.12 million USDC flash loan from Kamino to manipulate the USDC/USDT pool ratio and withdraw liquidity at distorted rates.
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How much was taken from Allbridge Core?
PeckShield estimated the exploit at about $1.65 million.
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What did Allbridge tell liquidity providers to do?
Allbridge urged liquidity providers in affected pools to withdraw their funds after pausing Allbridge Core.
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Where did the attacker move the stolen funds?
The attacker bridged the stolen funds from Solana to Ethereum.
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Why was a flash loan useful in the attack?
The $1.12 million USDC flash loan supplied enough temporary capital to manipulate the USDC/USDT pool ratio before liquidity was withdrawn at distorted rates.
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