Cross-chain protocol Allbridge is pausing operations after a reported exploit involving flash loans totaling about $1.65 million. Multiple reports say the attacker uses a flash loan to manipulate liquidity and exchange rates within Allbridge-related stablecoin pools on Solana. CoinDesk reports the attacker takes a $1.12 million flash loan from Kamino, then alters pool ratios to withdraw assets at advantageous rates. Cointelegraph similarly describes the use of flash loans and rapid swaps to distort the stablecoin exchange rate, enabling withdrawals before funds are bridged. Decrypt adds that the attacker distorts the Solana stablecoin pools and then moves proceeds to Ethereum.
While the reports vary slightly on the exact mechanics and funding sources, they broadly describe the same sequence: a flash-loan-driven manipulation of stablecoin pool ratios or exchange rates, followed by asset withdrawals and then bridging or transferring funds to another chain. Allbridge’s pause is framed as a containment step while the incident is investigated.
