Allbridge Core, that delicate little cross-chain stablecoin protocol, has been forced to pause its breath after a security incident on Solana-a contretemps that the diligent sleuths at PeckShield have estimated at roughly $1.65 million, give or take a few tears.
“If you have liquidity in affected pools, please withdraw now.”
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…
– Allbridge (@Allbridge_io) July 19, 2026
Allbridge confessed that the attack left some pools temporarily out of balance-like a tipsy dandy at a ball. That imbalance, they noted, created an arbitrage window that allowed some traders to profit from unusual pricing. The team, with the hopefulness of a spurned lover, asked anyone who benefited to consider returning funds to a recovery address. It said returned assets would go toward compensating affected liquidity providers. At the time of writing, the notice did not give a reopening date or publish a technical report-presumably because they were busy composing elegies.
In addition, according to Onchain Lens, the attacker borrowed $1.12 million in USDC through a flash loan from Kamino. The attacker then carried out rapid USDC and USDT swaps that changed the ratio inside the Allbridge stablecoin pool, as if rearranging deck chairs on the Titanic. After the pool price moved, the attacker withdrew liquidity using the distorted rate and repaid the flash loan within the same transaction-a neat little trick that would have made Houdini blush.
Flash loans, for the uninitiated, allow users to borrow and repay funds in one blockchain transaction without posting normal collateral-a marvel of modern finance that is, let’s face it, an accident waiting to happen. In this case, the loan itself was not described as the vulnerability. Instead, the borrowed liquidity allegedly gave the attacker enough capital to move the pool ratio and extract value before the transaction ended. PeckShield later said the stolen funds were bridged from Solana to Ethereum, where they presumably now enjoy a life of quiet luxury.
Allbridge faces another bridge security incident-because history is a merry-go-round
The latest Allbridge Core exploit follows an earlier attack against the project, as if the universe were trying to teach them a lesson in humility. As crypto.news previously reported, Allbridge suffered a separate exploit in April 2023 after an attacker manipulated the swap price of a BNB Chain pool. The loss was estimated at about $573,000, and the project later recovered roughly $465,000 after offering the attacker a white-hat reward-a sort of “please don’t do it again” payment.
The new incident also comes during another active period for cross-chain security breaches, because apparently the crypto gods have a sense of humor. In May, the Verus-Ethereum bridge lost more than $11.5 million in an attack linked by researchers to missing validation checks. A separate crypto.news report said Transit Finance lost about $1.88 million in another cross-chain protocol exploit. Allbridge has not said whether the Solana incident shares technical similarities with those attacks-perhaps because they are too busy counting their remaining funds.
2026-07-20 08:36