BlockBeats News, July 20th, the cross-chain bridge protocol Allbridge temporarily paused its Core protocol due to a flash loan attack. Currently, the attacker has stolen approximately $1.65 million from the Solana stablecoin liquidity pool.

According to blockchain security firms PeckShield and CertiK, the attacker borrowed $1.12 million in flash loan funds through the Solana lending protocol Kamino. Subsequently, the attacker manipulated the Allbridge pool's price mechanism through multiple stablecoin exchange operations to swap assets at a lower price and then cross-chain transferred the funds to an Ethereum address.

During the attack, the attacker used USDT to swap for approximately $2.24 million USDC, then bridged the funds to Ethereum for further dispersal. It is currently unclear whether some of the funds can be recovered.

Allbridge stated that the team has temporarily paused the Core protocol for security reasons and requested affected liquidity providers to withdraw their funds immediately. Due to the attack causing the liquidity pool to become unbalanced, some traders took advantage of arbitrage opportunities. Allbridge has urged these users to return their profits, stating that the funds will be used to compensate affected LPs.

The team mentioned that currently users' funds face no further risk, and they will release a detailed event analysis report after completing the investigation. They also plan to relaunch the Core protocol with the liquidity pool removed.

This is Allbridge's second encounter with a similar flash loan attack. In April 2023, the protocol's BNB Chain liquidity pool suffered a loss of approximately $573,000 due to a similar exploit. The project team had previously stated that they were able to recover most of the funds and adjust the liquidity calculation mechanism.