Allbridge Core Pauses Cross-Chain Protocol After $1.65M Flash Loan Attack on Solana Pools

Allbridge Core paused its cross-chain protocol on July 19, 2026, after an attacker drained $1.65 million from its Solana stablecoin pools. The exploiter used a $1.12 million flash loan from Kamino to manipulate pool ratios, withdrew assets at inflated rates, and bridged the funds to Ethereum before routing them through privacy protocols. Allbridge has urged liquidity providers to withdraw assets and is appealing to arbitrageurs to return profits, while planning a relaunch of Core without liquidity pools.

Allbridge Core flash loan attack

• ▪Allbridge Core paused its cross-chain stablecoin protocol on July 19, 2026, following a security exploit that drained approximately $1.65 million from its Solana liquidity pools
• ▪Allbridge urged liquidity providers to withdraw their funds from the affected pools immediately while the protocol remains paused for investigation

Flash loan exploit mechanism

• ▪The attacker executed the exploit by taking a $1.12 million USDC flash loan from the Solana-based lending protocol Kamino
• ▪The attacker used the flash loan to perform rapid stablecoin swaps, distorting the USDC/USDT pool ratios and allowing them to withdraw assets at inflated values before repaying the loan

Stolen funds bridged to Ethereum

• ▪The stolen funds were routed through privacy protocols and mixed addresses to obscure their movement on the Ethereum network
• ▪The attacker bridged the stolen $1.65 million from Solana to Ethereum and converted the assets into ETH

Liquidity provider compensation efforts

• ▪Allbridge announced plans to relaunch Core without liquidity pools, routing transfers through CCTP and LayerZero to eliminate pool-imbalance risks
• ▪Allbridge requested that arbitrage traders who profited from the temporary pool imbalance return their gains to a designated address to help compensate affected liquidity providers

Allbridge previous 2023 exploit

• ▪Allbridge eventually recovered approximately $465,000 of the stolen 2023 funds through an agreement with a white-hat hacker
• ▪In April 2023, Allbridge suffered a similar flash loan attack on its BNB Chain liquidity pools, resulting in losses of approximately $570,000

Cross-chain bridge vulnerability pattern

• ▪The Allbridge exploit is part of a broader trend of cross-chain bridge vulnerabilities, with over $355 million lost across 20 bridge hacks in 2026 alone
• ▪Other recent bridge exploits in mid-2026 include a $1.7 million drain on Taiko, a $4.67 million exploit on Secret Network, and a $3.35 million attack on Across Protocol