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BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
07/20/2026

Allbridge Core Pauses After $1.65M Flash Loan Exploit, TVL Plunges

What happened: Allbridge Core, a Solana-based cross-chain bridge, suffered a $1.

Allbridge Core Pauses After $1.65M Flash Loan Exploit, TVL Plunges

What happened: Allbridge Core, a Solana-based cross-chain bridge, suffered a $1.65 million exploit on July 20, 2026, after an attacker used a $1.12 million flash loan from Kamino to manipulate USDC/USDT pool ratios. The attacker bridged the stolen funds from Solana to Ethereum, routing about $1.1 million through privacy pools. Allbridge paused the protocol, urged LPs to withdraw, and requested arbitrageurs who profited from the pool distortion to return funds. The protocol’s TVL plunged to approximately $12.78 million. This marks Allbridge's second major flash-loan exploit since 2023, raising concerns about the effectiveness of its security upgrades.

Why it matters: The incident underscores persistent vulnerabilities in DeFi cross-chain protocols, particularly around flash-loan manipulation. Despite previous security overhauls, Allbridge’s repeated breaches highlight the challenge of defending against sophisticated attacks. The rapid TVL decline signals eroding user trust and could prompt broader scrutiny of cross-chain bridge security standards.

Source: The Block, CoinDesk, PeckShield (X)