Allbridge Core Suffers $1.65 Million Exploit; Protocol Paused Amid Ongoing Investigation

Allbridge, the foundation behind the cross-chain stablecoin bridge Allbridge Core, confirmed a protocol-level exploit over the weekend. On-chain investigators from multiple security firms estimate the losses at approximately $1.65 million. Notably, the protocol’s native tokens, ABR and ABR0, remained stable, and total value locked (TVL) held firm.

Allbridge Sounds the Alarm

On Sunday evening (UTC), Allbridge alerted users to a security incident and paused the protocol as a precaution while an investigation commenced. The team advised liquidity providers in affected pools to withdraw their funds, noting that the exploit created a temporary pool imbalance that opened a brief arbitrage window.

Allbridge appealed to parties who profited from the incident to return the compromised funds to a designated address (0x01a4…A4D0), stating that recovered assets would be distributed to impacted liquidity providers. As of publication, the project has not issued a follow-up statement, with retrieval efforts and the investigation still underway.

$1.65 Million in Losses

While Allbridge did not release specific figures, blockchain security firms including PeckShield placed the total loss near $1.65 million. On-chain analysis reveals the attacker bridged stolen assets from Solana to Ethereum. The exploit involved borrowing $1.12 million in USDC from the Kamino lending protocol and manipulating pool ratios through rapid swaps to withdraw funds at advantageous rates. The proceeds were subsequently routed through privacy protocols to obscure the transaction trail.

This incident recalls a previous flash loan attack on Allbridge in April 2023, which targeted the protocol’s pool on BNB Chain and resulted in losses exceeding $500,000.

ABR and ABR0 Unfazed

Despite the exploit, Allbridge’s utility tokens, ABR and ABR0, showed resilience, trading within their typical $0.05 range. Market capitalization estimates varied between $460,000 on CoinMarketCap and over $1 million on DeFiLlama. Furthermore, the protocol’s TVL remained near $13 million, suggesting market participants retain confidence in the platform’s long-term viability.

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