Cross-chain bridge protocol Allbridge Core immediately suspended its stablecoin system operations after detecting a security incident on the Solana network on July 20, 2026. Two blockchain analytics firms, PeckShield and Onchain Lens, estimated total losses from the exploit at around $1.65 million.
The attacker did not use their own initial capital, launching the exploit by borrowing 1.12 million USDC through a flash loan on DeFi platform Kamino Finance. These borrowed funds served as the primary ammunition to manipulate Allbridge’s internal pricing system.
The hacker’s modus operandi relied on manipulating stablecoin exchange rates. Using the 1.12 million USDC, the attacker swiftly swapped it for USDT within the Allbridge pool. This large transaction distorted the pool’s balance ratio. Once the rate drifted significantly from the normal price, the hacker drained liquidity at the manipulated exchange rate, pocketed the arbitrage profit, and repaid the flash loan to Kamino - all executed within a single transaction block.
The trail of stolen funds has moved away from the Solana ecosystem. The attacker bridged the illicit proceeds to the Ethereum network before routing them into privacy pools to break on-chain tracking trails.
Withdraw Funds Immediately
As of now, the Allbridge development team has not released a technical post-mortem or established a timeline for reopening the protocol. The team’s primary focus has shifted to securing remaining assets.
Allbridge’s security team urged all liquidity providers in the affected pool to promptly withdraw their remaining assets. The price distortion caused by the manipulation was also exploited by several arbitrageurs. Allbridge urged anyone who profited from the pool imbalance during the attack to return the funds to the protocol’s official recovery wallet.
For Allbridge, this marks the second flash loan attack to breach its defenses. In April 2023, an attacker manipulated its pools on BNB Chain, resulting in a loss of roughly $573,000. At the time, Allbridge successfully negotiated and recovered $465,000 via a white-hat bounty scheme.
Why Crypto Bridges Remain Prime Targets
The Allbridge incident once again underscores cross-chain bridging protocols as high-risk single points of failure. Their smart contracts lock massive amounts of liquidity in a single location, attracting exploiters seeking code vulnerabilities.
This marks the sixth incident specifically targeting cross-chain bridges since May 2026. The list continues to grow: the Verus-Ethereum bridge suffered an $11.5 million exploit, followed by a $4.67 million incident on Secret Network. Other protocols, including Transit Finance ($1.88 million) and Taiko ($1.7 million), add to a victim list that also includes Gravity Bridge and Butter Network.
Cross-chain infrastructure serves as a vital artery for moving liquidity, yet each newly connected network expands the attack surface. As long as these solutions see widespread adoption, hackers have every incentive to keep trying to pick the lock. Reported by crypto.news.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
