Allbridge Halts Cross-Chain Bridge Following $1.65 Million Exploit
Vexoda Newsroom
The Allbridge cross-chain bridge has been paused after a security incident where attackers used flash loans and rapid swaps to drain $1.65 million, marking the sixth such attack targeting bridges sinc
Allbridge, an operator of cross-chain stablecoin bridges, announced on Sunday that it had halted its protocol as a precautionary measure following a significant security breach. The attackers reportedly used a flash loan and rapid swaps to exploit Allbridge Core’s Solana deployment, draining $1.65 million from the system.
The attack involved a complex sequence of actions: first, an attacker obtained a $1.12 million USDC flash loan from Kamino; subsequently, they engaged in swift USDC/USDT swaps that manipulated the exchange rate within Allbridge Core’s stablecoin pool on Solana. This imbalance created a temporary arbitrage opportunity, allowing the attacker to withdraw liquidity at favorable rates and repay the borrowed funds with a profit of $530,000.
This incident is part of an ongoing trend in cross-chain bridge security breaches since May 2026. Other notable attacks include those on Taiko, Secret Network, Gravity Bridge, Verus Bridge, and Butter Network. These incidents highlight the vulnerability of bridges that often hold substantial liquidity pools to be exploited by attackers seeking quick profits.
Allbridge Core’s pause is aimed at preventing further losses and allowing for a thorough investigation into how such attacks can occur again in the future. The company has advised users with affected pool liquidity to withdraw immediately, emphasizing the importance of swift action to mitigate potential financial damage.
The broader implications are significant, as cross-chain bridges play crucial roles in facilitating seamless asset transfers between different blockchain networks. Such security incidents not only impact individual traders but also erode trust within the entire ecosystem and could lead to stricter regulatory scrutiny on these protocols.
Traders should remain vigilant about potential risks associated with using cross-chain bridges and stay informed of ongoing developments. Further, developers must continuously improve bridge security measures to prevent similar exploits in the future.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.