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Crime and Investigations

Allbridge Exploited for Over Half a Million Dollars in Flash Loan Attack

Allbridge Exploited for Over Half a Million Dollars in Flash Loan Attack

Allbridge, a multichain token bridge, has been the target of a $573,000 exploit by an attacker who manipulated the BNB Chain pools swap price.

Peckshield, a blockchain security firm, was the first to inform Allbridge of the exploit that resulted in the loss of approximately $573,000 worth of Binance USD and Tether USDT from the pool.

Allbridge has extended an offer to the attacker to reveal themselves as a “white hat” and receive an undisclosed bounty in exchange for returning the funds.

In addition to this, Allbridge is collaborating with law firms, law enforcement, and other affected projects to locate the perpetrator and prevent future attacks.

To carry out the hack, the attacker utilized a flash loan attack, executing a sequence of USDT swaps prior to depositing funds into BUSD and USDT liquidity pools on Allbridge.

Through this approach, the attacker was able to manipulate the USDT price in the pool, which facilitated a swap of $40,000 BUSD for $789,632 USDT. As a preventive measure against future attacks, Allbridge temporarily suspended its bridge protocol and plans to restart it after addressing the vulnerability.

READ MORE: Ethereum (ETH) Short Squeeze to Fuel Rally, Predicts Analyst

As per CertiK, a blockchain security firm, the flash loan attack used in the Allbridge exploit is becoming more popular among hackers. In March, a total of 26 crypto projects were hacked, which caused a combined loss of $211 million.

The largest share of these losses, over 90%, was due to the Euler Finance hack on March 13, whereas other significant attacks were inflicted on projects such as Swerve Finance, ParaSpace, and TenderFi.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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