Allbridge Core Loses $1.66 Million in Targeted Bridge Attack

The Allbridge Core cross chain bridge suffered a significant security breach over the weekend that resulted in a loss of approximately 1.66 million dollars. A hacker used a flash loan to manipulate the pricing mechanics within the Solana liquidity pools, allowing them to extract funds by taking advantage of a flaw in how the platform processed same asset swaps.

The attacker borrowed over 1 million dollars in USDC, then executed a series of swaps that distorted the internal price of Tether within the pool. Because the system was configured with permissive safeguards, the price imbalance grew until the hacker was able to swap a small amount of USDT for a massive payout of USDC. The attacker then repaid the initial flash loan and walked away with the remaining stolen assets.

Allbridge has confirmed that user wallets and private keys remain safe. While the team has traced 1.63 million dollars of the stolen funds to an Ethereum address, they are moving quickly to address the vulnerability. The project has suspended pool based swaps and is shifting its infrastructure to prevent this type of price manipulation from happening again.

This incident highlights the ongoing risks associated with cross chain bridges and liquidity protocols. Investors should watch for further updates from the Allbridge team regarding recovery efforts and future security upgrades as the platform works to restore full functionality.