Allbridge Core Pauses Bridge After $1.65 Million Exploit

Allbridge Core has taken its cross chain bridge offline following a significant security breach. An attacker managed to drain about $1.65 million from the platform by manipulating the exchange rates for stablecoins. The team reacted quickly by pausing operations to prevent further losses and to start an investigation into the incident.

The exploit involved a method using flash loans and rapid swaps. By briefly flooding the system with liquidity and making quick trades, the attacker tricked the pricing mechanism. This allowed them to withdraw far more funds than they should have been able to, leaving the liquidity pools out of balance.

This incident highlights the ongoing risks associated with cross chain bridges, which have become frequent targets for hackers. While Allbridge works to fix the issue, users are waiting for updates on when the bridge will return and if funds can be recovered. Traders should stay cautious and watch for official statements as the situation develops.