Allbridge Halts Protocol After $1.65 Million Flash-Loan Exploit
Allbridge Core is a cross-chain bridge designed to move stablecoins between blockchains including Solana and Ethereum. Such protocols pool liquidity and coordinate transfers across otherwise separate networks, making them important infrastructure for decentralized finance. Their concentration of assets and reliance on smart-contract pricing also make them frequent targets, with any failure potentially exposing liquidity providers and disrupting users’ ability to move funds between chains.
On July 19, an attacker borrowed $1.12 million through a flash loan from Solana-based lending protocol Kamino and rapidly swapped USDC for USDT to distort Allbridge Core’s pool ratios, according to Onchain Lens. The maneuver enabled withdrawals at favorable rates and drained about $1.65 million. Allbridge paused the protocol and urged users to remove liquidity from affected pools. PeckShield and CertiK said the stolen assets were later bridged from Solana to Ethereum and deposited into privacy pools.
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The history behind this eventAxelar Cross-Chain Bridge Exploit Drains $4.67 Million
Cross-chain bridges lock assets on one blockchain and mint corresponding tokens on another. If their validation systems fail, unbacked tokens can be redeemed for real assets. The IBC bridge between Axelar Network and Secret Network had operated since early 2023. The incident underscores how bridge contracts and monitoring systems remain critical risks in the cross-chain ecosystem.
On June 10, 2026, an attacker exploited an “infinite mint” vulnerability in the Secret-side ics20-for-axelar contract, which failed to verify the source channel. The attacker minted seven types of unbacked tokens and redeemed them for about $4.67 million in assets. The incident did not come to light until June 17. Axelar subsequently disconnected Secret Network and notified law enforcement, while some of the funds flowed to Ethereum, BNB Chain and exchanges.
Gravity Bridge Suffers Key-Exposure Exploit, Losing About $5.4 Million
Gravity Bridge is a cross-chain protocol connecting the Ethereum and Cosmos ecosystems, with validators jointly authorizing asset transfers. Cross-chain bridges hold large concentrations of tokens, and stolen keys can allow attackers to bypass security controls. The incident again highlights key-management risks in DeFi infrastructure.
On-chain analyst Specter raised the alarm on May 30, 2026, saying an apparent contract-key exposure had allowed about $5.4 million to be removed from Gravity Bridge. The assets included 4.3 million USDC, 274 WETH, 434,000 USDT and 14.164 PAXG, leaving only about $85,000 in the contract. The team confirmed the following day that the bridge had been paused.
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