The Core protocol under the cross-chain bridge Allbridge has been temporarily suspended. The project suffered a flash loan attack on its stablecoin liquidity pool on Solana, resulting in losses of approximately $1.65 million. The team has immediately disabled the protocol and initiated an investigation, while requesting liquidity providers in the affected pools to withdraw their funds as soon as possible.
The attack occurred on the Solana stablecoin pool.
Allbridge Core uses native stablecoin liquidity pools to enable cross-chain swaps, supporting assets such as USDC and USDT without relying on wrapped tokens. According to disclosures from the project team and on-chain security firms, the attacker initiated a $1.12 million flash loan from the Solana lending protocol Kamino, followed by a series of rapid stablecoin exchanges that distorted the pool's pricing.
After the price was manipulated, the attacker exchanged a large amount of USDC at a low cost. CertiK stated that the attacker initially swapped approximately $2.24 million in USDC using just thousands of dollars in USDT, then transferred the funds from Solana to an Ethereum address and continued dispersing them.
The project team has requested that LPs withdraw their liquidity.
Allbridge stated that after the pool became imbalanced, a brief arbitrage opportunity emerged in the market, allowing some traders to purchase mispriced assets. The project has called on traders who profited from this opportunity to return the funds to a designated address, stating that the funds will be used directly to compensate affected liquidity providers.
Currently, Allbridge is preparing a more detailed incident explanation and post-mortem report. The team also stated that they are attempting to restart Core without relying on liquidity pools and confirmed that current user liquidity is not under further threat.
This is the second similar incident.
This is not the first time Allbridge has suffered a similar attack. In April 2023, the project lost approximately $5.73 million from its BNB Chain liquidity pool due to a similar flash loan vulnerability. At the time, the team stated that most of the funds were subsequently recovered, and adjustments were made to liquidity and withdrawal calculations.
Cross-chain bridges and their associated liquidity pools have consistently been high-risk targets for DeFi attacks. Reports indicate that losses from DeFi attacks in the first five months of 2026 have exceeded $840 million. Last month, a cross-chain bridge between Axelar and Secret Network suffered a loss of approximately $4.67 million due to a "minting unlimited tokens" vulnerability in the token contract.
Allbridge remains suspended. The amount of funds that can ultimately be recovered depends on the tracking of assets after the cross-chain transfer and whether related arbitrage traders return their profits.