Allbridge Pauses Core Bridge After $1.65 Million Hack

Cross chain bridge Allbridge suspended its Core bridge operations on July 20 following a security breach. Security researchers identified an attacker who managed to drain approximately 1.65 million dollars from liquidity pools on the Solana network.

The incident occurred through a flash loan attack. This type of exploit uses massive amounts of borrowed capital to manipulate the price of assets within a smart contract for a very short time. The attacker used this method to pull funds out of the bridge before security systems could react.

Allbridge confirmed the suspension shortly after the event to prevent further losses. The team is currently working to assess the damage and investigate the vulnerability. Traders should stay cautious while the protocol remains in a paused state.

This event serves as a reminder of the security risks present in cross chain infrastructure. Market participants are watching to see if the team can recover the stolen funds or if a reimbursement plan will be announced for affected liquidity providers.