Allbridge paused after $1.65 million flash-loan attack

Cross-chain bridge Allbridge is offline after an attacker drained about $1.65 million from its Solana liquidity pools. The playbook was familiar DeFi fare: a $1.12 million flash loan from the Kamino lending protocol funded a burst of USDC/USDT swaps that skewed the pools’ internal pricing, letting the attacker withdraw assets at favorable rates before bridging the haul to Ethereum. Security firms CertiK and PeckShield flagged the incident.

The team has paused the protocol while it investigates and is urging liquidity providers to pull funds from the affected pools. Traders who happened to profit from the distorted prices are being asked to return those gains so providers can be made whole. Allbridge has been here before — a similar flash-loan attack on BNB Chain cost it roughly $650,000 in 2023, most of which was later recovered.

The takeaway for users has not changed: bridges remain one of DeFi’s most-attacked components, and liquidity parked there carries real tail risk.