Allbridge Core Suffers $1.65M Exploit; Plans Restart and Shift to Allbridge Next
AI Market Summary
Allbridge Core suffered a $1.65M liquidity-pool exploit using a USDC flash loan to manipulate stablecoin pool ratios and extract funds. While the team says user liquidity is not currently at risk and Allbridge Next remains operational, the incident highlights ongoing DeFi pool-design and oracle/ratio-manipulation risks. Planned shutdown and migration away from liquidity pools may reduce future exposure but can pressure bridging and DeFi risk sentiment near term.
Impact level
● Medium
Affected assets
BTC/USDT+2.99%
AI Insight · BTC/USDTAI Insight
▼ Bearish
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Allbridge said on July 20 (UTC+8) that an attacker drained $1.65 million from the Allbridge Core liquidity pool. The project stated that user liquidity is not currently at risk and that Allbridge Next continues to operate normally.
The team is preparing a restart plan for Core that removes liquidity pools, with transfers to be routed through CCTP and LayerZero to reduce exposure to pool imbalance risk. Allbridge added that Allbridge Core and Allbridge Classic will wind down in their current form within three months, urging users to withdraw liquidity ahead of time.
Earlier, Foresight News cited Onchain Lens monitoring showing the attacker used a Kamino flash loan to borrow 1.12 million USDC, quickly swapped USDC for USDT to distort Allbridge's stablecoin pool ratio, withdrew liquidity at the manipulated rate, and repaid the flash loan within the same transaction, netting about $1.1 million. (Source: Foresight News)
