# Allbridge Freezes Cross-Chain Bridge Following Security Breach Flash loan attack results in $1.65M loss, liquidity providers warned. - **Source:** [CryptoNinjas](https://brifing.si/source/1b474a6a-b607-4f1e-8706-b192b0c6d750) - **Published:** 2026-07-20 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/0b2855e1-2216-4973-8977-9ce67e4d5525 ## Security Breach and Swift Response Allbridge Core lost $1.65M due to a flash loan exploit, prompting protocol suspension during investigation. Attackers manipulated stablecoin pools on Solana to create arbitrage opportunities before moving funds to Ethereum. ## Attack Mechanism The attacker obtained a $1.12M flash loan from Kamino on Solana, then rapidly swapped USDT/USDC to distort pool ratios. This enabled advantageous asset purchases and immediate resales within the same transaction. ## Cross-Chain Fund Movement Stolen funds were traced from Solana to Ethereum—a common obfuscation tactic. Blockchain analysts PeckShield and CertiK detected anomalous transactions shortly after the incident. ## Urgent Liquidity Provider Alert Allbridge advised LPs to withdraw from affected pools. The protocol publicly requested traders who profited from temporary arbitrage to voluntarily return gains, promising redistribution to victims. ## Inherent Flash Loan Risks Uncollateralized flash loans enable instant access to large liquidity within single transactions. This incident demonstrates how even well-audited protocols remain vulnerable to extreme market condition exploits. ## Ongoing Bridge Security Concerns Cross-chain bridges remain among DeFi's most vulnerable points. The Allbridge case reiterates how quickly flash loan attacks can destabilize liquidity pools, highlighting persistent industry-wide security challenges. ## Sources covering this story - https://www.cryptoninjas.net/news/allbridge-freezes-cross-chain-bridge-after-a-security-incident/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._