- Allbridge Core lost $1.65M after a flash loan attack manipulated Solana liquidity pools.
- The attacker bridged stolen funds to Ethereum before converting the assets into ETH.
- Allbridge paused the protocol as investigators traced funds and assessed the exploit.
Allbridge Core experienced a security breach that resulted in the loss of about $1.65 million worth of funds from its system on Solana. As a result, the system was immediately shut down. The attacker swiftly moved the stolen funds to Ethereum and exchanged them for ETH, highlighting ongoing security challenges for systems that connect different blockchains.
Flash Loan Attack Drains Allbridge Core
Allbridge reported a security breach where hackers stole about $1.65 million worth of cryptocurrency by taking advantage of a weakness in their system that connects different blockchains. They’ve temporarily stopped all activity while they investigate what happened and how much damage was done.
Lookonchain, a blockchain analysis firm, revealed that the hacker quickly moved all the stolen money from Solana to Ethereum and then converted it into Ether. These fast transactions made it harder to recover the funds and showed how rapidly attackers can now exploit vulnerabilities across different blockchains.
Allbridge(@Allbridge_io) was exploited for ~$1.65M!
The hacker rapidly transferred the stolen cryptocurrency from Solana to Ethereum, then exchanged it for Ether ($ETH).
— Lookonchain (@lookonchain) July 20, 2026
Security experts say the attacker started the hack by borrowing $1.12 million in USDC through a “flash loan” from Kamino, a Solana-based lending platform. This allowed them to quickly make several transactions all within the same block, and the loan was automatically paid back shortly after.
The attacker quickly traded between USDC and USDT, briefly changing the prices within Allbridge Core’s stablecoin pool. This artificial price distortion allowed them to make a large, illegal profit by withdrawing funds under favorable conditions, without needing to borrow money long-term.
Once the attacker paid back the quick loan they used, they still held about $1.65 million. They then moved this money through services designed to hide transactions on Ethereum. Investigators are currently following where the stolen funds go, watching for any further transfers across various cryptocurrency networks.
Allbridge advised users with funds in the impacted pools to withdraw them as the investigation continues. They also asked anyone who profited from price differences during this time to consider returning those funds to help reimburse those who lost money.
Bridge Security Faces Renewed Scrutiny
Allbridge has experienced another security issue, following a similar attack last year. In 2023, attackers exploited a weakness to manipulate exchange rates on the BNB Chain, resulting in over $573,000 in losses.
Attackers are still targeting cross-chain bridges because these systems hold large amounts of valuable digital assets that move between different blockchains. When these attacks succeed, they can cause huge financial losses with just a few transactions affecting multiple blockchains.
As an analyst, I’ve been tracking a concerning trend: several bridge protocols – including Taiko, Secret Network, Gravity Bridge, Verus Bridge, and Butter Network – have recently experienced security breaches. These repeated incidents are really highlighting the need for more thorough smart contract audits, better ways to protect liquidity within these bridges, and significantly improved monitoring systems to catch potential threats faster.
Security companies specializing in blockchain, like PeckShield and CertiK, quickly noticed unusual activity on the network that turned out to be a new exploit affecting Allbridge. Investigators are still examining transaction details to understand exactly how the attack happened and see if any funds can be recovered.
Allbridge is still investigating the incident while working to improve the security of its systems and explore ways to compensate those who lost funds. This event highlights the ongoing risks associated with technology that connects different blockchains, even as the broader decentralized finance space becomes more secure.
2026-07-20 23:49