Allbridge paused its cross-chain protocol this week after a flash loan attack drained $1.65 million from the bridge's Solana stablecoin pools. Security firms reported the incident, which saw the attacker manipulate the bridge's pricing mechanism and then move the stolen funds to Ethereum. The pause is meant to prevent further losses while the team investigates.
How the attack worked
The attacker used a flash loan — a type of uncollateralized loan that must be repaid within a single transaction — to distort the price of stablecoins on Allbridge's Solana pools. By temporarily inflating or deflating the pool's balance, the attacker was able to withdraw more value than they deposited. Flash loan attacks are a known vulnerability in DeFi protocols that rely on on-chain price oracles or liquidity pools without proper safeguards.
What Allbridge did
Allbridge halted its cross-chain bridge shortly after the attack was detected. The team said in a brief statement that the protocol was paused to protect user funds. The company has not yet announced a timeline for resuming operations or a plan to reimburse affected users. The pause affects all cross-chain transfers through Allbridge, which connects Solana, Ethereum, and other networks.
Funds moved to Ethereum
Blockchain data shows the attacker transferred the stolen stablecoins from Solana to Ethereum. Security firms are tracking the wallets, but the funds have not been frozen or returned. The move to Ethereum suggests the attacker may be trying to launder the proceeds through decentralized exchanges or mixers.
Allbridge has not disclosed whether it will deploy a fix or seek to recover the funds. The incident adds to a growing list of cross-chain bridge exploits this year. Users are advised to monitor Allbridge's official channels for updates on when the protocol will reopen and whether any compensation is planned.
