Allbridge Core has suspended its cross-chain stablecoin protocol after a security breach on Solana that may have cost the platform about $1.65 million.
Blockchain security firm PeckShield estimated the losses at around $1.65 million, while on-chain tracker Onchain Lens said the attacker extracted more than $1.1 million before moving the stolen funds from Solana to Ethereum. The protocol has paused operations while it investigates the incident and has urged users with funds in the affected liquidity pools to withdraw them as a precaution.
#PeckShieldAlert @Allbridge_io Core was exploited for ~$1.65M.
The exploiter has bridged the stolen funds from #Solana to #Ethereum pic.twitter.com/ZOZysmJcAH
— PeckShieldAlert (@PeckShieldAlert) July 20, 2026
How did the attacker exploit Allbridge Core?
According to Onchain Lens, the attacker began by taking a $1.12 million USDC flash loan from Kamino. The borrowed funds were then used to carry out a series of rapid USDC and USDT swaps that changed the balance of Allbridge Core’s stablecoin liquidity pool.
Once the pool ratio was manipulated, the attacker withdrew liquidity at distorted prices, allowing them to extract funds before repaying the flash loan within the same transaction.
Flash loans themselves were not the vulnerability. Instead, they provided enough temporary capital to manipulate the pool and profit from the price imbalance before the transaction was completed.
ALSO READ: Taiko Halts Bridge Operations After $1.7 Million Exploit
Allbridge pauses protocol and asks liquidity providers to withdraw
In a public notice, Allbridge confirmed it had paused Allbridge Core after detecting a security incident.
The team advised users with liquidity in the affected pools to withdraw their funds immediately while the investigation continues.
According to Allbridge, the attack temporarily pushed some liquidity pools out of balance, creating arbitrage opportunities that allowed traders to profit from abnormal pricing. The project also called on anyone who benefited from the imbalance to voluntarily return the funds to a designated recovery address, saying any recovered assets would be used to compensate affected liquidity providers.
The protocol has not announced when services will resume and has yet to release a detailed technical report on the exploit.
Another bridge exploit adds to security concerns
In April 2023, the protocol lost about $573,000 after an attacker manipulated swap prices in one of its BNB Chain pools. Allbridge later recovered roughly $465,000 after offering the attacker a white-hat bounty.
The exploit also comes amid a series of cross-chain bridge attacks this year. In May, the Verus-Ethereum bridge lost more than $11.5 million in an exploit linked to missing validation checks, while Transit Finance suffered another cross-chain attack that resulted in losses of about $1.88 million.
The Allbridge team has not disclosed whether the latest Solana exploit is connected to those previous incidents.
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