Allbridge Exploit Pauses Bridge After 1.65M Dollar Drain

The Block reported on July 19 that security firms PeckShield and CertiK estimated losses at roughly 1.65 million dollars. Onchain Lens said the attacker borrowed 1.12 million USDC through a Kamino flash loan, then made rapid USDC and USDT swaps that distorted pool ratios before withdrawing at favorable rates.

The Block also reported that the stolen funds were bridged from Solana to Ethereum. Allbridge said it paused the protocol while it investigates and asked users to withdraw liquidity from affected pools. The team described the imbalance as a temporary positive arbitrage window and asked participants who used it to consider returning funds for affected liquidity providers.

UseTheBitcoin reported on July 20 that the attack targeted the exchange rate inside Allbridge Core's stablecoin pool. A flash loan is borrowed and repaid within one transaction, which can let an attacker move a thinly protected price before a protocol's normal safeguards react.

The 1.65 million dollar figure is small beside the largest crypto exploits, but the incident directly affects bridge users and liquidity providers. It also places fresh attention on Solana-based stablecoin pools, where cross-chain transfers depend on balances remaining aligned across networks.

The immediate test is whether Allbridge publishes an incident report and restoration plan before the 24-hour mark from The Block's July 19, 11:33 p.m. EDT report, which falls on July 20 at 11:33 p.m. EDT. Until the team confirms that affected pool balances and bridge operations are safe, users should treat the pause as active rather than assume transfers have resumed.