Allbridge Core Halts Operations Following $1.65M Solana Exploit

16h ago•

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This article was first published on The Bit Journal. Allbridge Core has temporarily suspended its cross-chain stablecoin protocol following a security incident on the Solana blockchain that may have resulted in losses of up to $1.65 million. The Allbridge Core team has advised that liquidity providers remove their assets from the affected pools, and the security team is currently investigating the exploit.

According to Blockchain security firm PeckShield, the attack resulted in the loss of around $1.65 million, whereas blockchain analytics company Onchain Lens claimed that the attacker withdrew over $1.1 million using an advanced liquidity pool manipulation scheme that exploited Allbridge Core. Last damage assessment is under review.

#PeckShieldAlert @Allbridge_io Core was exploited for ~$1.65M.

The exploiter has bridged the stolen funds from #Solana to #Ethereum pic.twitter.com/ZOZysmJcAH

— PeckShieldAlert (@PeckShieldAlert) July 20, 2026

Attack Targeted Allbridge Core Stablecoin Pool

The project’s official announcement states that Allbridge Core protocol has been temporarily halted due to suspicious activity. The team also advised users holding funds in affected liquidity pools to withdraw the assets from the pools immediately.

Allbridge Core is experiencing a security incident.
We have paused the protocol as a precaution while we investigate.

If you have liquidity in affected pools, please withdraw now.

The resulting pool imbalance created a temporary positive arbitrage window. If you took advantage… pic.twitter.com/Ovg7yT35SM

— Allbridge (@Allbridge_io) July 19, 2026

Initial on-chain data indicates that the liquidity pool attacked by the exploit was the Allbridge Core USDC/USDT pool. The attacker then took out a $1.12 million USDC flash loan from Kamino and completed a number of quick swaps between USDC and USDT, according to Onchain Lens.

🚨 Allbridge Core exploited for $1.1M+ on @solana.

Attack flow:

$1.12M USDC flash loan from @kamino
↓
Rapid USDC/USDT swaps distort #Allbridge stablecoin pool ratios
↓
Liquidity withdrawn at manipulated rates
↓
Flash loan repaid within the same transaction
↓
~$1.1M… pic.twitter.com/vvKNxuFVZg

— Onchain Lens (@OnchainLens) July 20, 2026

Flash Loan Manipulated Allbridge Core Pool

The large volume trades reportedly caused some price imbalance in the liquidity pool because of the discrepancy in the liquidity pool balance. The attacker then adjusted the exchange ratio, took out funds on favorable terms, repaid the flash loan in the same transaction and got the rest of the funds from the Allbridge Core protocol as profits.

Flash loans enable users to borrow large amounts of cryptocurrency without pledging any collateral, as long as they have the ability to repay the loan before the transaction concludes on the blockchain. In this instance, the flash loan vulnerability is not the problem itself, but rather the ability of the attacker to efficiently manipulate the pricing of Allbridge Core pool.

PeckShield later said that the stolen assets were moved from Solana to Ethereum, which may make it more difficult to recover them.

Allbridge Core Begins Recovery Process

Allbridge Core confirmed that after the exploit, the iquidity pools were temporarily out of balance, which provided arbitrage opportunities for traders. Any one who benefited from these unusual market events were called upon to voluntarily return the funds to the recovery wallet which the team said would be used to remunerate the affected liquidity providers.

The protocol has not announced when Allbridge Core services will resume and has yet to release a detailed technical analysis of the exploit.

Cross-Chain Security Risks Continue Growing

The latest incident comes on top of Allbridge Core’s list of security issues. The protocol was further exploited in April 2023 when a hacker altered the price of tokens in a BNB Chain liquidity pool causing losses of approximately $573,000. Part of those funds were eventually repatriated when the project provided the attacker with a white-hat bounty.

Finally, the recent Allbridge Core exploit highlights the ongoing security concerns in the cross-chain ecosystem. In recent months, several bridges have been targeted, such as Verus-Ethereum and Transit Finance, further demonstrating that liquidity manipulation and bridge weakness in the validation process persist as open challenges in DeFi.

Conclusion

The Allbridge Core incident highlights the security risks of cross-chain protocols, while investigations into the stolen assets are ongoing. Market participants will now closely observe the project’s technical findings, recovery progress, and any other safety measures put in place prior to protocol resuming operations.

Summary

Allbridge Core paused its protocol after a suspected $1.65 million Solana exploit.
A $1.12 million flash loan was allegedly used to manipulate the liquidity pool.
The incident highlights persistent cross-chain security risks as the investigation continues.

Glossary of Key Terms

Allbridge Core: A protocol for transferring stablecoins across blockchains.

Flash Loan: A loan repaid within one blockchain transaction.

PeckShield: A blockchain security firm.

Onchain Lens: A blockchain analytics platform.

Arbitrage: Profiting from market price differences.

Recovery Wallet: A wallet for returned funds.

DeFi: Blockchain-based financial services.

White-Hat Bounty: A reward for ethical hackers.

Frequently Asked Questions about Allbridge Core Exploit

1. Why did Allbridge Core pause its protocol?

It paused operations after a suspected $1.65 million Solana exploit.

2. How was the exploit carried out?

The attacker allegedly used a $1.12 million flash loan to manipulate a liquidity pool.

3. What should affected users do?

Withdraw funds from affected liquidity pools.

4. Has the protocol resumed operations?

No, the investigation is still ongoing.

References

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Disclaimer

The article is purely informational and it is not a financial, investment, or a trading advice. Cryptocurrencies are extremely risky and volatile. Before investing, the readers are to conduct personal research and seek the advice of a qualified financial expert.

16h ago•

The Bit Journal

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