Allbridge Core paused its protocol after an attacker exploited its stablecoin liquidity pools, with blockchain tracker Onchain Lens estimating losses exceeding $1 million.
The incident adds to a growing number of attacks targeting crypto protocols, with exploits resulting in $57.8 million in losses in July 2026.
How the Allbridge Exploit Unfolded
Onchain Lens reported that Allbridge Core suffered an exploit on Solana, resulting in losses of more than $1.1 million.
According to the firm, the attacker used a $1.12 million USDC flash loan from Kamino to manipulate the protocol’s USDC/USDT stablecoin pool through a series of rapid swaps, distorting the pool’s ratios before withdrawing liquidity at inflated values.
The attacker repaid the flash loan within the same transaction. That move extracted roughly $1.1 million.
Onchain Lens added that the stolen funds were later routed through privacy protocols to obscure their movement.
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Allbridge Seeks Recovery of Funds After Exploit
Allbridge paused the protocol as a precaution and opened an investigation. It said the imbalance briefly opened an arbitrage window for some traders. Allbridge asked traders who profited from the imbalance to return funds.
The team said they aim to “return all affected funds.”
“If you took advantage of it, please consider returning funds to the address below – this will go directly toward compensating affected LPs. 0x01a494079DCB715f622340301463cE50cd69A4D0,”
The latest attack follows another flash loan exploit that targeted Allbridge in April 2023. In that incident, an attacker exploited an Allbridge pool in the BNB network, resulting in losses of approximately $570,000.
BeInCrypto has reached out to Allbridge for comment.
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Source: BeInCrypto
