Allbridge Core temporarily suspended its protocol as a precaution after an outflow of funds worth $1.65 million. Cointelegraph reported on July 20 that the incident occurred on July 19 on the Allbridge Core Solana deployment.
The attacker already moved the stolen funds from Solana to Ethereum and then transferred them to a privacy pool. Allbridge Core said on social media platform X (Twitter) that a security incident had occurred. It halted the protocol during the investigation period and asked liquidity providers in affected pools to withdraw their funds.
The attack is believed to have used a flash loan and sequential swaps. Onchain Lens said the attacker received a $1.12 million USDC flash loan from Kamino and then rapidly swapped USDC and USDT to distort the exchange rate in Allbridge Core's stablecoin pool. The attacker then withdrew liquidity at the distorted rate, repaid the $1.12 million USDC loan and kept the difference.
Allbridge Core said a pool imbalance created a temporary positive arbitrage window and asked those who used it to return the funds. Returned funds are expected to be used to compensate affected liquidity providers.
Chi-gyu Hwang (황치규)
delight@d-today.co.kr