- The Allbridge Core bridge was hit by a flash loan exploit.
- The attacker manipulated the rate in the USDC/USDT pool and profited from it.
- The funds have already been moved to the Ethereum network, with some sent to mixers.
PeckShield experts reported that the Allbridge Core bridge was hacked, with damages of $1.65 million. The team confirmed that suspicious activity had been detected and said operations were suspended.
According to Coinminutes, the attacker used a flash loan of about 1.12 million USDC, taken via the Kamino protocol, to manipulate the USDC/USDT pool through rapid swaps.
While the price was distorted, the attacker withdrew liquidity. They repaid the $1.12 million flash loan and kept the difference as profit. The largest single withdrawal totaled 2.24 million USDC.
The funds were bridged from Solana to the Ethereum network, with some sent to mixers. Estimated damages are $1.65 million.
The project team confirmed the incident, said the protocol had been paused, and urged users to withdraw assets from the pools. The developers also asked those who may have used the “window of opportunity” to earn arbitrage profits to return the funds, which will be used to cover the losses.
Amid the incident, the project’s total value locked (TVL) fell from $21.61 million to $12.78 million.
Note that this is not the first such incident involving Allbridge. In April 2023, the protocol was hit by a similar flash loan attack. At the time, the target was liquidity pools on BNB Chain, and the damage totaled about $570,000. However, the hacker returned most of the funds.
Сообщение The Allbridge Core Project Was Hacked for $1.65M появились сначала на INCRYPTED.