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 has suffered a security exploit that drained approximately $1.65 million from its Solana deployment, prompting an immediate protocol pause. The attacker quickly bridged the stolen funds to Ethereum, converted the assets into ETH, and intensified concerns over persistent security risks facing cross-chain infrastructure. Flash Loan Attack Drains Allbridge Core Allbridge confirmed a security incident after attackers exploited its Solana-based cross-chain stablecoin bridge and extracted roughly $1.65 million in digital assets. The protocol immediately paused operations while the team investigated the exploit and assessed its overall impact. Blockchain analytics platform Lookonchain reported the attacker rapidly bridged all stolen funds from Solana to Ethereum before swapping the assets into ETH. The swift transfers complicated recovery efforts while highlighting the speed of modern cross-chain exploit operations. Allbridge(@Allbridge_io) was exploited for ~$1.65M! The exploiter quickly bridged all the stolen funds from #Solana to #Ethereum and swapped them for $ETH.https://t.co/9nSNCarACRhttps://t.co/Gl4p4U3XhL pic.twitter.com/3T5N0Tc8xt — Lookonchain (@lookonchain) July 20, 2026 According to blockchain security researchers, the attacker initiated the exploit using a $1.12 million USDC flash loan borrowed from Solana liquidity protocol Kamino. The borrowed capital enabled several rapid transactions within a single block before repayment occurred automatically. The attacker repeatedly swapped USDC and USDT, temporarily manipulating exchange rates inside Allbridge Core’s stablecoin liquidity pool. Consequently, the distorted pricing created favorable withdrawal conditions that generated significant illicit profits without requiring permanent borrowed capital. After repaying the flash loan, the attacker retained approximately $1.65 million before transferring the proceeds through Ethereum-based privacy services. Investigators continue tracking wallet activity while monitoring any further movement of the stolen cryptocurrency across different networks. Allbridge urged users holding liquidity within affected pools to withdraw funds while the investigation remains active. The project also requested anyone benefiting from temporary arbitrage opportunities to voluntarily return funds for compensating affected liquidity providers. Bridge Security Faces Renewed Scrutiny The latest exploit marks another security setback for Allbridge after a previous flash loan attack struck the protocol during 2023. That earlier incident resulted in losses exceeding $573,000 after attackers manipulated swap prices on the BNB Chain deployment. Cross-chain bridges continue attracting attackers because they secure substantial liquidity supporting assets transferred between independent blockchain ecosystems. Consequently, successful exploits often generate significant financial losses within only a few transactions across multiple networks. Recent months have witnessed several bridge-related security incidents affecting projects including Taiko, Secret Network, Gravity Bridge, Verus Bridge, and Butter Network. These repeated attacks have increased industry focus on smart contract auditing, liquidity protection, and stronger monitoring systems. Blockchain security firms, including PeckShield and CertiK, identified the latest Allbridge exploit shortly after suspicious on-chain activity emerged. Meanwhile, investigators continue analyzing transaction records to determine the full attack sequence and support potential recovery efforts. The investigation remains ongoing as Allbridge works to strengthen protocol security and evaluate possible reimbursement options for affected liquidity providers. The incident also reinforces continuing concerns surrounding cross-chain infrastructure despite ongoing improvements across decentralized finance platforms. The post Allbridge Exploited for $1.65M as Hacker Bridges Funds to Ethereum appeared first on Live Bitcoin News.

Read full article on LIVE BITCOIN NEWS