Allbridge Protocol Halted After $1.65 Million Exploit

Cross chain bridge Allbridge suspended its services today following a major security breach. An attacker successfully drained $1.65 million from the protocol by using a flash loan to manipulate asset pool ratios.

The hacker secured a $1.12 million loan through the Kamino platform to create an artificial price imbalance. This allowed them to drain funds from the liquidity pools at heavily discounted rates before moving the stolen assets across other chains.

Allbridge developers confirmed the incident and paused the bridge to prevent further damage. They are currently working to trace the stolen funds and assess the impact on affected liquidity providers. Users are advised to avoid interacting with the protocol while the team stabilizes the system.

This incident serves as another reminder of the risks associated with bridge protocols and flash loan mechanics. Traders should keep an eye on official updates to see how the team plans to reimburse users and restore normal operations.